Risks Management Research Of Vertical Industry Market Expansion Project In Company H

Company H,one of the foreign companies which entered into China's market very early,grasped the market opportunity of reform and opening up policy and invested factories in China.Company H took the sales as the major marketing model and expanded business in kinds of industries.But after the global economic crisis in 2008,Chinese economic grows inadequately and becomes excess capacity,insufficient domestic demand and export weakness.Bad market environment makes the competition much fiercer.So Company H choose to change and starts the vertical industry market expansion project to find the new potential opportunities to get new growth in the future.Although the vertical industry market expansion project could bring Company H the new growth opportunity,the uncertainty is still very big as the market change frequently,fierce competition and it is new to employees.The risks will cause a lot of damage to Company H and risks control is a big challenge.In this paper,the author has analyzed the marketing system and vertical industry market expansion project implementation process of the Company H.Then the author used system dynamics tool to build a system model which reflected Company H's vertical industry market expansion project.The system model of the project could be used to do risks identification and risks factors analysis.After that,the author used the AHP(Analytic Hierarchy Process)to measure the significance between the risks and told people kinds of risks which they need pay much more attention.And then the author evaluated the occurrence probabilities and loss of risks by using the Delphi method and data statistics.So the author put forward the risks control measures based on the risks evaluation.Besides that,the paper took OGP vertical industry market expansion project as an example to show the risks measurements.