Research On The Competitive Strategy Of ZH Company

In recent years,with the support of national policies and the recognition of the domestic and international markets,the domestic bio-industry has made considerable progress,and become a relatively booming industry in China.Monascus,as one of the biological industries,has great potential development.ZH Company was founded in 1997 and listed on the New Third Board in August 2015.It mainly produces plant protein liquid,caramel pigments,monascus rice(powder),monascus red,functional monascus,monascus yellow and other biological products.The company adheres to the high-tech line of production,education,research,science,industry and trade,which produces 60,000 tons of monascus,caramel color,acid hydrolyzed plant protein liquid and other products every year.In recent years,the company has made a lot of achievements in the research and development of monascus,such as 30 excellent bacterial strains being cultivated and 14 national patents being obtained.And it has obvious advantages in R&D and production of monascus series products.However,in recent years,many problems have arisen,such as the high capital-liability ratio,the gradual loss of competitiveness of traditional products in the fierce market competition,and the high competitive pressure of product quality in the company.This paper summarizes the external environment,analyses the macro environment and industry competition environment of ZH company,and on this basis summarizes the external opportunities and threats ZH faces in its development.Anong the development of the company,external opportunities are:the state’s strong support for the production industry,the great potential industry development;monascus market belonging to the emerging market,increasing larket demand;gradually standardized industry market;providing opportunities for large-scale production enterprises;no substitute for monascus products in the market at present.At the same time,the monascus industry is also facing many threats,such as:small and scattered production plants of monascus products,the fierce competition of the industry;great impact on the environment with environmental protection pressure;great gap bet,een domestic and foreign countries in technology.All these affect the future development direction of monascus industry.From the inside of the enterprise,,this paper analyses the advantages and disadvantages of enterprises from the aspects of resources and capabilities they have.And the internal advantages of the enterprise are obvious:Geographically,it is located in the main producing area of rice,soybean,eorn and other raw materials in China,which brings great convenience to the company’s raw material procurement and saves the cost of procurement and transportation,and provides conditions for large-scale production with large-scale plant resources and international leading equipment resources.Otherwise,the company attaches such great importance to the construction of intellectual property rights that many scientific research achievements are in the lead in the world,and has obtained 18 product patents,etc.Meanwhile,there are also disadvantages that can not be ignored within the enterprise.For example:the company’s organizational construction lags behind the production construction and the organizational structure is more rigid and inflexible;the company’s internal talent resources are scarce,professionals are few and educational level is low;the financial liability rate is high,the capital turmover rate is poor,and it faces the risk of debt repayment etc.Based on the analysis of the internal and external parts of the enterprise,comprehensively.analyzing on the internal and external environment of the SWOT,learning from Michael Porter’s Competitive Strategy Theory,this paper analyses the feasibility of three strategies.On the basis of combination of quantitative and qualitative analysis,ZH company’s competitive strategy is determined to focus on cost leadership strategy.This paper holds that ZH company should focus on four aspects in implementing its specific strategy:adjusting product structure,focusing on superior products;emphasizing R&D capability,focusing on independent innovation;introducing advanced equipment,focusing on technological transformation;changing passive to active marketing and focusing on high-quality customers.In order to ensure the smooth implementation of the company’s strategy,the company can formulate relevant safeguard measures in organizational structure,enterprise information construction,human resources management,capital guarantee etc.Based on the analyses of the external macro environment,industry environment and intermal environment of ZH Company,this paper summarizes the opportunities,threats,strengths and weaknesses that ZH Company is facing at present and creatively studies the selection and implementation of ZH’s competitive strategy,through the analysis and evaluation of EFE and IFE matrix to the company’s coping ability,combined with ZH company’s current strategy and problems.This study has a certain reference significance for ZH Company and other companies of monascus related industries in positioning development and competitive strategy formulation.