| IDC, which acts as an important node of network in the Internet information transmission,plays a significant role in its development. Since 1990 s,IDC business has made tremendous development in China. In recent years,IDC business has increased by over 20%. This growth is accompanied by the constantly updated internet technology and the sustainable development. The Internet continues to create new business model,as well as to provide thriving opportunities of the IDC’S own development. However,why are the private IDC companies in the face of so many problems and challenges? As the technology constantly updates and the market competition turns white-hot,this kind of operating companies needs to dynamically analyze the industry environment,and to enhance their competitiveness through establishing the companies’ core values.W Company,an IDC business Operating Private Company,is among the best in the domestic carrier-neutral Internet data center services with its nearly 30% market share. The Company is able to produce its core technology by the independent research and development. Yet,the problems and deficiencies still exist in the operation and management of the Company. Its long-term development strategies need to be clear and its core competitiveness construction should be urgently improved as well. Therefore,the research on W Company’s corporate strategies can significantly guide this industry.Focusing on the status of W Company,this paper not only analyzes the internal and external business environment but analyzes the industry structure with the Porter’s Five Forces Model as well. The internal conditions are also analyzed, which include the Company’s main products, resources, business abilities, value and its competitive advantages. This analysis helps the Company figure out its competitive advantages. The analysis reveals that China’s internet environment is just in the historical stage of a rapid development,so the construction and development of the Internet has risen to national strategies,furthermore,the appropriate policy has also been introduced. Our country has given full policy support to the construction and development of the Internet which has played a positive role in promoting the cause of the Internet; Constantly updated technology also makes the development of the Internet faster and higher. Thus,W Company is in a period of rapid development of the Internet with full of opportunities,but at the same time full of challenges and competition. Political,economic,technological environment as well as other macro-environment for the long-term development of the W Company is extremely beneficial. Through the analysis on the internal factors,W Company has had certain technical strength and market development capabilities,and the advantages of the resources and marketing abilities. But the formulation of the Company’s strategies is rather vague and it fails to give full play to the strengths and expertise; There are some deficiencies in the management.Through the above analysis,providing the development strategies,this paper has shown W Company a way of looking for the best competitive strategies. The SWOT Analysis has been used to analyze the strengths and weaknesses of this Company,as well as its environment,opportunities and threats. Finding out the possible development opportunities and challenges created by the environment and setting the strategic objectives,the two competitive strategies of W Company have been chosen: Cost leadership strategy and Differentiation competitive strategy,This paper has provided a reference for those IDC business operating private companies when they want to select the strategies. |
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