The Probes Into Lu ZhouLaoJiao' Strategy Under The New Normal

An A-share listed company,Lu ZhouLaoJiao,on behalf of the Lu Zhou-flavor liquor,ranks the third biggest company of domestic liquor industry only after GuiZhouMaoTai and Wu LiangYe.Weighted values of ROE was 46.88% in 2012,33.15% in 2013,and after the liquor went into the depth adjustment the value of ROE was only 7.99% in 2014,up slightly in 2015,the weighted value of ROE was 14.74%.Luzhoulaojiao's business data can be treated as a microcosm of domestic liquor industry development in recent years.At the APEC meeting in 2014,Xi Jinping expounded the meaning of economic New Normal:the economy has shifted gear from the previous high speed to a medium-to-high speed growth;the economic structure is constantly improved and upgraded;the economy is increasingly driven by innovation instead of input and investment.How to meet business challenges and promote the development of enterprises under the new nomal,is the problem the company need to solve.First of all,this paper analyzed the external environment of Lu Zhou LaoJiao from the economic,political,social,industrial factors and found out the productions and incomes of liquor enterprise have started bottoming stable for two years after 2012,the development of industry has entered the new normal caused by the upgrade consumer,and the competition has become increasingly intense among businesses.Secondly,this paper analyzed the internal environment of LuZhouLaoJiao from product structure,marketing ability,capacity development,financial status,and organizational structure.Based on the analysis of external and internal environment,this paper moved on to refine the advantages,disadvantages,opportunities and potential threats the company currently has.Through the SWOT analysis it can be found that LuZhou LaoJiao's competitive advantage is more obvious.After the change of the internal and external environment during 2012-2015,the company's performance has bounced back stronger,its brand advantage and channel advantage are still significant and it will have many opportunities in the future.As a result,the author thinks the most suitable strategy for LuZhouLaoJiao is SO strategy.Under the intrinsic resource of competence and superiority,the company can grasp the historical opportunity to realize corner overtaking instead of being eliminated by the market in the industry background.Specific measures include: utilizing the middle products to capture a large share of the market;adhering to the direct distribution channel mode of operation,and pushing vendor integration;seizing the moment to buy high quality assets;advancing mix and employee shareholding timely;advancing the strategy of "digital information";and adapting to the new consumer demand by service innovation.