Study On Product Diversification Strategies Of Yunan Baiyao And Pian Zi Huang

Chinese medicine is a great treasure of China,has experienced several thousand years of development,the formation of complementary medical science and Western medicine system.With the current social change of the increasing iatrogenic,drug-induced diseases and health concept and the medical model,compared to the chemical drug toxicity is relatively large,traditional Chinese medicine to its source to the characteristics and advantages of natural,the side effect is small,curative effect,low price,increasing attention,highlighting the traditional Chinese Medicine the advantages of traditional Chinese medicine pharmacy.The Chinese medicine industry has become one of the fastest growing industries in china.However,in the past few years,the profit growth of the Chinese patent medicine industry has gradually slowed down.Due to the institutional impact and structural imbalance,the domestic Chinese medicine enterprises in the development strategy focus on immediate interests,it is difficult to have long-term planning,enterprises need to make adjustments in technology construction,asset management and product differentiation,in order to maintain its strong market competitiveness.Therefore,product diversification strategy has become an important way of strategic transformation of Chinese patent medicine enterprises.Product diversification strategy can not only enrich the profit structure of Chinese patent medicine enterprises,but also disperse the operational risks of proprietary Chinese medicine enterprises.Around this goal,this paper selects pientzehuang Yunnan Baiyao and two companies as a case study,the financial data for the two companies to conduct in-depth analysis,from the macro and micro environment analysis of the causes of the implementation of diversification strategy of the two companies,the thesis points out that the traditional Chinese medicine gradually compressed profit,industry competition and alternative pressure gradually expanded,to develop new the two business enterprises.But in the process of their own practice,there are successful benefits and lessons of failure.What benefits and risks of the implementation of specific diversification strategy bring to enterprises?What's more,this paper used the method of financial data analysis.First of all,the case study of the two companies three financial statements were analyzed objectively existed in application in the management of the two companies the advantages and disadvantages;after the proportion and the profit structure of the two companies diversified product marketing contribution rate is analyzed;finally,the financial data to select several other representative Chinese medicines listed the enterprise,combined with DuPont analysis,several companies were compared,to explore Yunnan Baiyao and pientzehuang through the implementation of diversification strategy embodied in the industry's competitive advantage.Based on the above conclusions and financial analysis,according to the actual experience of the two companies objectively analyzes the product diversification strategy of enterprise positive experiences and negative experiences should avoid,finally puts forward some countermeasures and suggestions,guide the two enterprises more scientific management and implementation of product diversification strategy.