Study On The Development Strategy Of Guangzhou Linong Feed Company

Since the 1970 s when Chiatai Conti Group entered into the Chinese market, the feed industry in China has sprung up across the country like mushrooms. From the start to take-off, it has gradually become an important industry in the national economywithirresistible forceto move forward.After30years' rapiddevelopment, China has become the biggest feed producer in the world at present. However, with the maturity of the industry and the increasing competition, the feed industry has stepped into a platform stage at present. Especially, during the period of 12 th Five-Year-Plan,there have emerged a large number of closures among the small and medium-sized feedenterprises due to the dual influence of the policies and pork price. The Linong Company, a company that commits to the development of both green and safe fermented feed, was established in the most stagnant period of the feed industry in China(2014). At the very beginning, just as the time when the company produced high technical content products while had a low production level, it was derided by the industry peers as “the beggar with a golden bowl”.However, the Linong Company only took half a year to go through the start stage and began to seek profits. The industrial competition of biological fermentation field ferments as the state control of food additives and the popularization of bio-fermentation technology right now, while the company itself has various problems such as a low production capacity as well as a strong bargaining power of customers. Under such circumstances, how Linong Company will maintain an advantageous position in the market and continuea healthy development is a problem needed to be solved urgently. Therefore, this paper takes Linong Feedstuff Company as the object of study and conducts a research on its development strategy.First, this paper analyzes the external environment of the Linong Company from the aspects of politics, economy, society and technology(PEST analysis). Second, through the analysis of the industrial characteristics and competitiveness of the feed industry where the Linong Company exists, this paper finds out the development strengths and weaknesses of the industry and the company, distinguishing the source of profit and enhances the ability of value-increasing for the company. Thirdly, through the comparative analysis of the corporate development history, this paper provides a more particular knowledge of the corporate strategic capability. Finally, based on the mission and the medium to long term goal, this paper combines the STP strategy and the SWOT matrix to formulate strategy, as well as in line with the strategic choice criteria to determine the development strategy of the Linong Company.Through research and analysis, this paper draws a conclusion that according to the current internal and external environments thatthe Linong Company faces, the company should mainly adopt an intensified corporate development strategy and a forward integrative business strategy; the company is also suggested to employ the price strategy for market competition; while in terms of marketing, the company should mainly utilize the service differentiation and the market penetration strategy,make full use of its technical advantage and the flexibility as a small-sized enterprise to strengthen its market share and increase its profitability.