Research On Corporation Strategy For JC Company

In recent years,China's IT enterprises have been flourishing with the accelerated growth of global informatization and policy supports from the government.JC company is a private IT enterprise in Xinjiang,So far,confronted with fierce competition,JC has some problems,such as developeslowly,lower profit margin of retail business year by year,increased labor cost and long investment return cycle of new security monitoring business.It demands attention from the management in JC,which the author works for,to consider how to take the opportunity of fast economic growth in Xinjiang district to orient JC's development and map out effective corporate strategies.In this thesis,the author has deeply analyzed the internal and external environment of JC by applying management knowledge and strategic management analysis tools.By comprehensively analyzing the opportunities,threats,strengths and weaknesses of this company,the author intends to develope realistic new corporate strategies,competitive strategies for JC.The author also discusses how to implement these strategies in the thesis.The first chapter presents the theme background and research methodology of this thesis.The second chapter reviews the strategic management theory to lay the theoretical foundation.PEST Analysis is adopted in the third chapter to analyze the external environment of JC.At the same time,the author uses s Five Forces Model to analyze the competitive environment faced by JC.JC has a high bargaining power,new entrant barrier and low substitute force in part of businesses.On the other hand,the bargaining power of customer increases and the profits decrease every year.In the fourth chapter,the author analyses the internal environment of JC.The internal strengths for JC are stable source of customer,meeting the operation qualification requirements of the specific industries,high marketing capabilities.JC also has disadvantages in terms of resources and capabilities such as lack of clear strategies,inadequate expansion of new business,poor financing,weak software development and so on.In the fifth chapter,the author utilizes SWOT Analysis to evaluate JC's strengths,weaknesses,opportunities and threats and proposes strategic visions,goals and alternative strategies for JC.By using Quantitative Strategic Planning Matrix,to analyze the alternative strategies,the author concludes that the Growth Strategy is the best strategic choice for JC.The author also discusses how to use diversification and strategic alliance growth strategies to help company to grow.JC should adjust it's diversification growth strategy by optimizing the business portfolio,weakening the retail business and enhancing the system integration and security monitoring business.Meanwhile,through strategic alliance Strategy,JC will share resource,risk and profits with third-party companies to develop system integration business and security monitoring business.This will help JC to make up the shortages in internal resources and capabilities.For competitive strategies,JC will take low cost strategy in retail business,differentiation Strategy in system integration business and Low-cost Focus Strategy in the security controlling business.Finally,the author discuss how to implement JC's strategies,from the perpective of organizational structure,human resources,marketing models,cost control,risk system and corporate culture.The thesis will help JC to better understand its position and develop appropriate corporate and business strategies.It will be also helpful for other small IT companies like JC to develop healthily.