Research On Development Strategy In Linyang Co., LTD

LinYang co.,ltd.is a manufacturing enterprise listed on China's A – share.Which has a higher market share in the industry of smart meters during more than twenty years,and gaining good fame of industry and customer.In order to improve the return rate of assets and seek new profit growth points,enterprises choose diversified development.Therefore,on the one hand,the company actively develops the international market of electricity meters to consolidate the advantages of the main industry;on the other hand,open up the photovoltaic business.Driven by the positive effects of policy encouragement and market demand expansion,LinYang invested in photovoltaic industry in 2015,mainly engaged in the production and sales of crystal photovoltaic modules and the construction and operation of photovoltaic power stations.Through the cash flow accumulated in the ammeter business and the credit standing of the industry,the company opened the market quickly.And through cooperation and other ways to develop sales and operation channels.LinYang got a good profit in the short term,which gross margins was higher than the industry average,although production and sales volume was no match for industry leaders.In addition,the construction and operation of photovoltaic power stations have also made good profits.However,on account of the fierce internal competition,overcapacity,imbalance of supply and demand,international trade barriers,the development prospect of photovoltaic industry is full of uncertainties.The thesis uses the strategy theory as the guidance,through the analysis of the company's resources and capability,coming the conclusion of the advantages of the internal environment in brand,fund-raising,quality management,and weaknesses in accounts receivable and or so;by using PEST analysis for the macro environment,to identify the opportunities of national policies?level to the economy,and deficiencies in the level of science and technology;by using Porter's fiver forces models to analyze industrial environment situation,coming the conclusion of both the advantages of entry difficulties for new entrants,etc.,and the disadvantages of fierce competition,etc.;by using the internal and external factors matrix,the company's intensive development strategy is obtained.In the strategic choice,obtains the growth strategy by synthesizing the internal and external environment factor;,then discusses the SO strategy matches with the SWOT matrix,and prove the correctness of strategic choice combined with the actual operation of the company.Finally,it analysis of the types of diversification and the path of development and relevant measures to ensure the implementation of the strategy are put forward.This paper suggests that the company take advantage of internal advantages to seize opportunities and gain market share.In addition,I also hope that diversified companies canoptimize the allocation of resources and merge related businesses.And reminding enterprises in the industry to focus on the impact of national policy changes on Industry.