Research On Development Strategy Of King's Luck Company

For the past two years,policies to restrict public consumption greatly impacted the liquor industry of China,which has experienced fast development.High-end liquor market shrinks rapidly:the growth rate of production and sales falls sharply and the industrial profits even declines.Competition within the industry intensified.Established in 1997,King's Luck company was listed in the stock market in 2014 through years of endeavor,hence a new era of development was opened.However,under the new conditions,it is important for King's Luck to formulate proper development strategy.This paper aims to analyze the internal and external environment of King's Luck company,clarify the opportunities and threats,find its strength and weakness,help determine the strategic goal and formulate proper development strategy under the market condition.Theories of enterprise strategic management and their application to liquor companies are first reviewed.Then the external environment of King's Luck company is analyzed by using PEST Model and Michael Porter's Five Forces Model.Then,its state of development is studied,so are the marketing conditions,human resources,financial conditions and R&D capability.After that,SWOT Model is used in comprehensive analysis of its internal and external environment.By integrating the analytical results with King's Luck company's mission and vision,goals of development strategy are set.Based on the above analysis,development strategy is suggested.First of all,King's Luck company should promote its brand and propagate the culture of fate.Secondly,the company should make an effort to increase its market share in Jiangsu province through the products' high visibility in mass-market consumption market.Besides,the company should choose the King's Luck brand as the leading brand which will be promoted in the market outside Jiangsu province.What's more,the company should use outstanding R&D capability raising quality of products and developing new products.In addition,the company should found the brand of wine and carry out the business which is connected with wedding celebration.Finally,concrete measures of marketing,human resources,production,R&D and financial management are presented.