The Research On Development Strategy Of Company Y

Recent years have witness the rapid development of the socialist economy and the improved quality of life across the board,as a result,the demands of eating out have been on the increase.The ever-growing catering industry has become a magnet for a multitude of investors.The soaring number of catering companies have made the market a highly competitive one.At the same time,changes have been made in people's demands for meals,consumption awareness and consumptions ways.The traditional way of buying grocery from the market and going into the kitchen to cook have been gradually changed into eating out in restaurant to better suit their taste buds.The idea of “eating full and well” has been elevated to safe,hygienic,green and healthy way of eating.All these changes have posed higher demands on the part of the catering companies.This paper is devoted to analyze and study in details the internal as well external environment and discuss the strength of company Y,a catering company which established itself in the middle and higher end of the catering industry.PEST analysis,industrial competitiveness,value chain analysis and SWOT analysis will be carry out in this paper.A closer look at the external environment will understand that the high-end market has shrunk as a result of “the eight Rules” implemented a few years back.However,with the support policies and the favorable economic environment,the market is saved by wider acceptance of cheaper but specially featured restaurants.The popularity of O2 O and various applications has promoted the development of online take-out orders.However it also brought about problems which needed immediate attention: low productivity of some catering companies,poor standards and management level,as well as poor quality of staff.Based on the internal environment analysis,company Y is widely known and influential in Jiangxi province,it also has a stable management team and client groups,it boasts quite a few special dishes and its service is higher than industrial standards.At the same time,it suffers from brain drain,shortage of management talents,reduced profit margins,which are all problems that hinder its progress.Following the internal and external environment analysis,a detailed SWOT analysis was conducted to discuss its strength,weakness,opportunities and threats faced by company Y.a development strategy was decided including its application and guarantee measures: three targets are set to strengthen the brand,gradual expansion and overall development,with each target being achieved within a three year timeframe before undertaking the next one.The overall strategy is horizontal integration – based on the current client groups of middle and high-end market,establish new sub-brand for middle and lower end market,so as to better use and integrate current resources.Differentiation strategy should be applied when facing competition.With an eye to explore innovative ideas in products,services and image,it will enhance its competitive edge.In terms of functional strategy,marketing strategy,quality control strategy,human resources strategy and brand culture strategy should be decided so as to achieve all the targets set.Based on the above-mentioned strategy and thoughts,company Y should be able to build a powerful support system which includes restructuring the organization,management standardization,research and development of products,brand promotion,scientific management and control of human resources and industrial and strategic cooperation to provide assurance for company development.This paper combines theories with methods to examine the development of a local business and the industry in which it survives.The paper also offered a custom-made development strategy for company Y,which is practical and instructive for its future development.It's hopeful that the paper could provide reference for other companies in the catering industry.