Research On Development Strategy Of SDZY Industrial Co.,Ltd.

Tobacco products are a relatively special consumption product,and China has made tobacco industry a state monopoly industry exercising exclusive state trading and selling,which means cigarettes play a very important role in state revenue.Apart from taxation,it also supports the development of "agriculture,rural areas,and farmers" for supporting local economy in remote tobacco growing areas,providing special subsidies for tobacco farmers,and putting investment in tobacco agriculture special proj ects.With the development of economy and the continuous implementation of tobacco control policy under international agreements,the sales market of tobacco products is more severe.Consumption demand of cigarettes is undergoing new change in China,which leads to the increasingly severe competition within this industry.In addition to traditional tobacco products,tobacco enterprises are carrying out product researches and innovations in response to the diversified needs of consumers,consequently,the system of free products has been enriched.Slim cigarette,short cigarette,blasting cigarettes and new types of e-cigarettes have been developed.What’s more,the competition among cigarette enterprises in all kinds of cigarette products is also increasing.Amidst the development of the whole industry,SDZY has many internal shortages,including the relatively weak research and development capacities,poor internal management ability,undeveloped brand cultivation and terminal brand construction capacity and the late start of informatization and technicalization,which put much more pressure on its further development.Facing pressure from both internal and external,it is more important to clarify the development direction,and make full use of development opportunities,overcome the shortcomings of its own,and integrate enterprise resources to achieve high-quality development.Taking SDZY Industrial Co.,Ltd.as the research object,this article first fully analyzes the external environment facing SDZY,through PEST analysis and Michael Porter’s five-force model,and sets up the EFE(External Factor Evaluation Matrix).It is formed by finding the opportunities in the "national monopoly" policy protection,local government support,huge consumer market and increased consumption levels,SDZY’s R&D capabilities,cooperation projects with other China Tobacco companies,and analyzing the threats including implementation of tobacco control policy,fierce market competition,unadvanced brand under the current situation,the late start in"information" and the "Internet+" environment.And by getting weight of the external factors of the enterprise and their corresponding rating through interviews and other forms.Secondly,it fully analyzes SCZT’s resources and capabilities,and finds out its advantages in organization structure,equipment operation level,production quality and logistics system,as well as its disadvantages in informationization,brand cultivation and the human resource management.Through interviews and other forms,an internal factor evaluation matrix(IFE matrix)has been formed,which can be used to analyze the internal resources and enterprise capabilities of SDZY.Through the evaluation and analysis of the external environment and internal environment,and combined with the SWOT matrix and SWOT strategic fixed-point analysis,it is determined that SDZY should choose a growth-oriented development strategy.The company should focus on vertical integration and enhances horizontal integration at the same time,in order to improve the company’s brand competitiveness and comprehensive strength.This paper selects the strategic implementation path based on the analysis results,and proposes corresponding safeguard measures to provide guarantee for the realization of SDZY’s integrated development strategy.By analyzing the development strategy of SDZY under the new competitive environment,this paper will benefit other companies and provides certain reference value for the development of tobacco industry under the new situation.