Competitive Strategy Research Of JC L.T.D. Company

JC joint-stock Limited Company, founded in 2003, has 51 subsidiaries. Jucheng Share, founded in 2003 and headquartered in Shenzhen, specializes in the management training and consulting. After 12 years of development, Jucheng Share has had 51 subsidiaries and more than 70 branches, more than 4000 employees, and served over 130 thousand small and medium-sized enterprises. Now, Jucheng Share is a small and medium-sized enterprise with an annual turnover of over 1.5 billion RMBs, as well as a leading enterprise in the management training industry. The concept of "training supermarket" proposed by the company subverts the "high-input and high-cost" enterprise training mode, and its "learning card" products create a new training model, which significantly reduce the enterprise training cost and successfully enhance the management level of small and medium-sized enterprises by packaging the most training courses into a learning card; in today when the Internet and mobile technology develops, the free mode of online management training courses has greatly challenged the training industry, shrunk the market of the original "learning card" products and seriously impacted the "learning card" model. On this basis and by virtue of its advantages of channel and customer resources, the enterprise, through using Michael Porter's Five Forces Model, re-combing the original industry value chain and redeveloping the group's general strategy, has established the strategy with low costs and scale benefits that is suitable for the Internet era and can promote the enterprise for rapid transformation and upgrading.The external opportunities faced by the company are as follows. The GDP has tended to be stable in recent years, a large number of small and medium-sized enterprises are rising, the middle-class groups are being formed, and the demand for quickly acquiring the knowledge arising from the formation of the small and medium-sized enterprise groups is also soaring steadily; the overall enterprise management training industry is in the early stage, but the whole market still has a tremendous upside potential; the market share could be effectively increased with the quick formation of the core competitiveness.The external threats faced by the company are as follows. With the rise of the Internet, the business model of the training industry has been changed, especially that the Internet "decentralization" has changed and adjusted the original value chain as well as the product development mode, operation mode, marketing mode, cooperation mechanism and organizational structure, etc.; the participation pattern of the training industry has been completely broken, and the participants in the industry competition are not limited to the enterprises within the industry; the cross-border competitors, especially enterprises with good customer bases have more competitive advantages; due to the industry's low entry threshold, the cross-border integrator will also enter the industry based on their strategic and layout factors, form the new competitive forces, and thus dilute the customer resources or change the industry rules.The company has the following internal advantages. The company has specialized in the management training and consulting for 13 years since its establishment; it has good and stable core value concept and its brand image also enjoys popular support; after the implementation of equity incentive, the company has fonned a relatively stable executive team, and the overall operation realizes good continuity; moreover, the company has establishes 51 subsidiaries in the country and has huge channel advantages; based on the nationwide offline channels, the company focuses on serving customers and has accumulated a lot of resources in over ten years; through its continuous service, the company has acquired strong customer stickiness; by paying attention to the training of marketing staff for over ten years, the company has possessed a strong marketing team and a perfect marketing personnel incentive system, which provides a talent guarantee for the effective realization of business objectives.Additionally, JC joint-stock Limited Company also possesses its internal weaknesses. It has strong team marketing ability but weak service ability; customers have tended to be mature through over ten years'study, and their cooperation with JC joint-stock Limited Company also tends to be rational; the product homogenization is serious, especially to the products that are developed on the basis of the customer demand, the team members are not professional enough and cannot effectively promote the products; the shareholding management and the corporate control needs to be strengthened.Through the above analysis and evaluation, the conclusions can be drawn as below. JC joint-stock Limited Company Co., Ltd. should implement the differentiation competitive strategy from the following aspects:to adjust and position the upstream and downstream and integrate the functions from the whole industry value chain, and form the differentiated product development and operation mode; to implement the differentiation strategy of the organizational structure and operation mode by virtue of the Internet trend and especially the development trend of mobile Internet; in the adjustment of marketing mode, to adopt the Internet tools and methods to improve marketing efficiency, break the traditional marketing restrictions, and form the effective marketing differentiation; to enhance the offline sale service in the nationwide 51 subsidiaries and form the service differentiation; to focus on the cultivation of professionals so as to support the implementation of service differentiation and match the customer service requirements and then form the differentiated talent team; to strengthen the resource integration, broaden the channel of resource integration, and form the differentiation through vitalizing the customer resources and enhancing the customer stickiness. After a series of differentiation implementations, the company then can distinguish it from the industry and potential competitors, and get high income.Some support safeguard measures are also formulated to ensure the effective execution of strategies:the first is to re-comb the value chain and adjust the operation mode according to the internal and external advantages; the second is to restructure the organizational structure and guarantee the strategy implementation; the third is to adjust the marketing mode and improve the marketing efficiency with the use of Internet tools; the fourth is to strengthen the cultivation of team professionals and enhance the customer stickiness through high-quality services; the fifth is to optimize the operation ability, improve the average value of human resources and ensure the strategy implementation; the sixth is to expand the financing channels and support the strategy implementation.