The Study On Value Chain Expansion For Rock Drilling Tools In Hunan Chengxin Trading Co.,Ltd

With the changes of external economic environment and development of drilling tools industry,the small and medium-sized enterprise simply exporting drilling tools by pure trade model is facing the situations to be short circuit by manufacturing factories and the living space is shrinking.And also the simple trade model is difficult to expand business scale and not conducive to the long-term development.In this paper a sound analysis and study is made on the export business of drilling tools in Hunan Chengxin Trade Co.,Ltd.,finding out the strategy which is most suitable for the company's status and the value chain position in the business of drilling tools among all the strategies and methods that may enhance the business,that is to expand to upstream and downstream of value chain.And through further study the preferred entry point for value chain upstream expansion and the specific strategy and operation method for value chain downstream which is most suitable for the company have been found out.And further make the study and discussion on the specific programs and implementation strategies on how to carry out the value chain upstream and downstream expansion.Firstly,it is analyzed in this paper the present operation management status and existing problems in Hunan Chengxin Trading Co.,Ltd.,confirming the demand for the operating management improvement and value chain expansion;Secondly,through the analysis on the value chain of drilling tools and the value-added mechanism of value chain of drilling tools,SWOT analysis method is used to find out the company's advantages,demonstrating the value of value chain expansion to draw the conclusion that the company should expand the value chain to upstream and downstream to obtain core competitive advantage;Thirdly,after analyzing the company's core strengths,choose out the preferred overall strategy and plan of the company's value chain expansion program,the expansion strategies of core technology and low cost manufacturing ability are adopted for upstream expansion,and drilling data sharing strategy based on e-commerce internet and big data thought is adopted for downstream expansion,making out the specific design;Finally,give out the detailed implementation and control plan of the program,and meanwhile use a variety of methods to analyze and predict the implementation effect.The value chain expansion for drilling tools business has significant strategic significance for the company's future development,and it is also a metamorphosis developing opportunity both for business and structure,which has all the characteristics of“second-time undertaking",all the people in the company are paying high attention and making every effort to put it forward.And it is also hoped that it will have reference value for the small and medium-sized trade enterprises of the same type.