Development Strategy Planning For ZH Company

At present,new industries and technological innovations are taking place in the world,and additive manufacturing technology(also known as 3D printing)is increasingly favored by experts and scholars.Many countries around the world regard it as a new growth point of future industrial development.Additive manufacturing is an emerging technology in the manufacturing industry.It is a new manufacturing technology based on digital models which can stacks materials layer by layer to produce physical objects.It can achieve a significant change in manufacturing methods from equal materials,subtractive materials to additive materials.China attaches great importance to additive manufacturing industry and takes it as the development key point of Made in China 2025.The goal is that by 2020,the annual sales revenue of additive manufacturing industry in China will exceed 20 billion yuan,with an average annual growth rate of more than 30%.ZH company,founded in 2015,is a mixed ownership company restructured from the subsidiaries of an aviation national enterprise,AVIC.The company has been taking niche theory as the strategic guiding ideology,focusing on the aviation product trade segmentation market,focusing on serving the aviation scientific research institute and manufacturer in Jiangxi Province,which are the subsidiaries of the AVIC,and striving to become the " Hidden Champion" of the industry.Through five years of development,the company has achieved rapid sales scale growth from ten million to more than one billion,profit growth from one million to more than ten million,and invested in five companies,gradually forming “ZH company group”.On the whole,the company has basically completed the first five-year planning goal set in the initial stage of the restructuring.However,at the beginning of the second five-year plan,although the company is still in the fast lane of development,ZH company gradually feels that the development has encountered a bottleneck.The managers urgently need to think about what is the condition and direction of the future development.The niche Strategy proposes that when the company has achieved relative success in a niche market,it is best to explore new niche markets and develop new niche business.Therefore,ZH company invested in an additive manufacturing service company in Jiangxi Province in 2018 and becomes its second largest shareholder.It hopes to use the good reputation and rich resources accumulated in the aviation national enterprise system over the years to introduce additive manufacturing technology into the aviation product segmentation market and achieve wide application.The goal is to become a “Hidden Champion" in the new niche market.This paper is wrote by literature deduction method and case analysis method and refers to relevant domestic and foreign literature.It analyzes the internal and external environment of ZH company and reexamines and plans the development strategy in the transformation process,by studying the relevant theories of niche strategy,enterprise strategic management,dynamic competition and enterprise strategic transformation and using PEST,Porter Five Force Model and SWOT analysis tools.It hopes to point out the direction and path for development of the company in the next five years.Through the analysis,Zh company has made its development direction of core competitiveness clearly,and the feasibility of niche strategy as the its development strategy in the next five years.Finally,ZH company has planned the corresponding development goals and implementation measures for the niche strategy.