Research On HX' Business Portfolio Strategy

Compare to the United States,information industry started relatively late in China,therefore,we rely heavily on software and hardware of IT manufacturers overseas.However,since “PRISM Event” took place in 2013,information security has received unprecedented attention of the nation.With the issuance of a series of “support domestic business and restrict overseas business” national policies,the sales and usage of foreign brands in China were restricted by the policies.The calling for IT localization rose increasingly,which brought about great challenges for IT manufacturers overseas.As for domestic system integration companies with the main business of being agencies of such manufacturers,this is a more noticeable test.HX company is the biggest agency of America Cisco Systems Networking Technology Co.,Ltd.in China.The company mainly acts as an agency of Cisco products and offers a series of technology services centered on related Cisco products,and Cisco-related businesses took nearly 90% of its sales performance.Under the influence of policies of IT equipment localization,HX company has been suffering from great challenge in its current business mode and encountering the strategic problems of business transformation.A new business portfolio is urgently needed to adapt to its development.This paper takes HX Company as the research object and applies the theory related to strategic management of company.First of all,from the macro environment of the industry,market demand,competitors and other aspects of the company's external environment.Secondly,the history of the company to sort out the status quo,pointed out that the three major HX business is the equipment distribution,system integration,after sales technical support outsourcing,and two small business: the equipment maintenance business and solutions business.And then analyze the internal environment from the company's resources and capabilities,core competitiveness.Pointed out that the core issues in the company's existing business portfolio,the company almost exclusively around CISCO products technical services,HX high dependence on CISCO,once the customer acceptance of the company's sales revenue decreased,HX's sale revenue immediately fell sharply.Next,we analyze the business portfolio of the company by using the Boston matrix and Parenting advantage,combined with the company's vision,to determine the company's strategic positioning is to become a reliable new IT service partner,portfolio strategy of HX company is "priority to the development of system integration and maintenance services,optimize equipment distribution business,and actively promote the solutions business".Finally,from the guiding ideology,organizational structure,human resources and performance appraisal,the implementation of the new business combination of the specific measures of the strategy.