The Research On The Business Strategies Of Davco Company

As an important part of industrial and civil construction,dry mixed mortar industry has had a rapid growth in recent years.This industry has a late start in China.The compound annual growth rate of the turnover in the dry mixed industry in China has been 20% since 2012.The total output was 300 million tons in 2016 in China.As the low threshold and well-known brand Nippon and domestic listed company Orient Rainbow fully going to the market,product homogeneity and the competition in the dry mixed mortar industry become more serious.As the leading brand in domestic dry mixed mortar industry,Davco company reached the sales growth less than 30% in 2016.It is the first time after many years fast increasing,and was below the level of main competitors as well.How to get competitive advantage in dry mixed mortar market and even the whole building materials market,and resume the fast growing rate are the largest challenges faced by Davco company in the following development.In order to solve the problem of low growth in Davco company at present,the article is trying to propose a new growth path for Davco company from the view of strategic management by studying the developing trend of the building materials market and the major competitors,and combing the 4P theory,the detail analysis on the core capabilities and existing problems of Davco company.Davco company needs to upgrade its business strategy from single retail network to multi-channels and multi-products + service network + Internet,so as to get the competitive advantage in the fast growing dry mixed mortar industry and keep the leading position in the industry.By the research methods of document study and case study,this research finds that there are some problems in Davco company,such as single channel,single product series,how to compete differently.In order to solve the current problems,the author suggests that Davco company should adopt the business strategy of developing more channels and more product series,laying service network,internal management through Internet tools,so as to drive the second wave of fast increasing,and explore a developing path with changes and innovations for many small and medium sized companies.