The Research On The Strategic Planning Of Zaifu Electrical Equipment Co. Ltd

With the rapid development of our country and the deeply reform in powerindustry, there is a fast development of small power equipment manufacturing industryand distribution industry. Many changes have taken place in small power equipmentdistribution industry because of the increasing openness of domestic market and thereformation of distribution patterns, which have brought a profound impact on theindustry. As a company which is specialized in power equipment sale, there were onlysix employees and no more than2million of sales revenue of Zaifu ElectricalEquipment Co., Ltd when it was established. After several years of development, thecompany has nearly20employees and its sales revenue have reached five times asbefore. The company is facing a series of problems caused by its rapid expansion andvariance of external environment, i.e. unreasonable organizational framework, weaksale power compare to market's expansion, too broad of categories of sales productsand so on. These problems have block severely the development of Zaifu ElectricalEquipment Co., Ltd.How to reconstruct the develop strategy which is used to deal with the aboveproblems is the core idea of this research. Firstly, the paper analyses the currentsituations of organizational frameworks, human resource, sale capacity and finance etc,and find out the advantages and disadvantages of inner environment of thedevelopment of the company. Then, this paper looked into the external circumstancesof Zaifu company and sums up the external opportunities and threats, internal strengthsand weaknesses by usage of PEST Analysis, Five Forces Model for competitiveanalysis and SWOT analysis tool. Meanwhile, this paper relocated the development ofthe company, argued that the company's overall development objective should be thefirst-class small devices of power distribution enterprise in the middle-south of China.Taking advantages of the quantitative calculation by EFE Matrix, IFE matrix ofquantitative analysis, Strategy Matrix-matching Analysis, and the way of matrix withQSPM, combining with the practical situation of the company, the paper rankedvarious options and maked choices of the given plans and puted forward the company'soverall development routine. It maked clear that the company should develop newproductions, explore the real market, be an integration on the horizontal level, stick tomarket penetration, enhance the sales of small equipment of the power, making it stronger and larger and better in the short-term; and in the long-term, the companyshould take the strategy of backward integration, enjoy the shares of small electricalequipment manufacturing enterprises and enhance their competitive advantage andthen achieve its strategic goals. Relating to Porter's competitive strategy theory, thispaper analyzed the competitive strategy of Zaifu Electric Equipment Co., Ltd. shouldadopt, which pointed out that the company's competitive strategy should be focusingon the differentiation. Finally, specific sub-strategies such as marketing strategy,human resource strategy, organizational innovation strategy, corporate culture,strategies and financial strategies have been brought forward according to the overalldevelopment strategy of the enterprise.