Research On The Development Strategy Of Hengtong Group

Hengtong Group as one of the largest enterprises in China,after witnessed soaring development during the past many years,Hengtong Group from a small factory developed into a national enterprises group and its assets has increased about 100 times.The story of Hengtong is just a vivid format of thriving China economy and miniature of the numerous private companies which have become the most flourish part of Chinese wire and cable industry through their persistent efforts.Wire and cable industry plays a key role in China economy.Wire and cable products have been applied in transmission in all respect of economy.Wire and cable industry is still a developing industry in China.While the internaltional wire and cable industry has already been very mature.In contrast,obviously Chinese wire and cable enterprise and their multinational counterparts are not on the same level.The Chinese wire and cable entperpirses are facing great challenge.In recent years,the international situation has undergone major changes,economic and trade activities have experienced large fluctuations,and the international division of labor system has undergone major adjustments,which pose great challenges to business operations and development.In particular,the current Sino-US trade war situation is fierce and severe,the Chinese economy is facing a big impact,and domestic enterprises will also face many risks.How to face the new situation and adjust the development strategy and operation direction as soon as possible is a difficult task for the Hengtong Group and many domestic enterprises to continue to succeed and evade and cope with risks under many difficult situations.Hengtong Group has achieved great success in the past years,and there have been no major mistakes in the formulation and implementation of relevant strategies.However,the success of the original strategy does not mean that the success of Hengtong can be ensured under the new situation.In the face of the new world political and economic situation,it is necessary for the Hengtong Group to reorganize its development strategy,carefully evaluate the rationality and applicability of the strategy,and make necessary adjustments in a timely manner to ensure that it continues to have strong international operations.Competitiveness,and then continue to achieve new developments.This article tries to make out the proper corporation strategy of Hengtong Group though the analysis of its core industry development,opportunity,challenge and internal conditions of Hengtong Group.Hengtong Group can follow an expanding strategy to close the gap between itself and international giant wire and cable manfacturers by merger and acquisition,Hengtong Group should also have other new strategies and improve itsoperating systems to enable Hengtong Group overcome the challenge of the foreign competitors.