Research On The Development Strategy Of MG Goat Milk Company

Into the 21 st century,the goat milk industry entered a high-speed development period.During the period from 2011 to 2017,the market size of the goat and dairy industry grew by more than 25% annually,with annual sales rising from 3.5 billion to nearly 6 billion,which expected to exceed 10 billion in 2020.MG Goat Milk Company is one of China's first goat milk enterprises,with the famous Chinese goat milk brand and its influence,however,due to the company's strategic mistakes after 2011,the market competitiveness is falling,the company's sales revenue drop significantly and the company sales growth rate is negative.Under the dairy formula registration system,the market release a great market share,MG Goat Milk Company will face strategic opportunities.This paper takes the MG Goat Milk Company as the object,and attempts to analyze the company's external environment to clarify the company's opportunities and threats,then analyzes the company's internal resources and capacity,and finally formulates the company's 3-year,5-year strategy,as well as the list of safeguard measures.Firstly,the author uses the PEST model to explore the macroscopic environment of MG Goat Milk Company,and analyzes the competitive trend of goat milk industry by using Porter five-force model.After the analysis of the external environment,this paper analyzes the internal resource capability of MG,which shows that there is a huge market opportunity in goat milk industry,but the competition of the industry will become fiercer.The author believes the strength of MG will make effects under the dairy formula registration system.Secondly,this paper uses the Commercial Canvas tool to study the company's strategy implementation situation since 2011,and it has analyzed the problems it faces and the causes.Through the research of the present situation,the problem and the cause,this paper puts forward the strategy plan of MG in the next 3-5 years,which includes the development of vertical integration,focusing on the infant formula business and establishing the company's own sales team.In the implementation of the steps,the first strategic is contraction,then to improve sales performance and layout new milk source base.Subsequently,this paper puts forward the implementation principle,implementation roadmap and implementation timetable of the new strategy,and sorts out the organizational guarantee factors and resource guarantee factors for the new strategic planning implementation of MG goat and milk Company.Specifically,the organizational security factors include leadership,organization and culture and resource guarantee factors includes human resources,financial resources and institutional resource.Finally,the paper gives a prospect for the development of MG goat milk Company.