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 Strategy Management Consultation

Analysis and confirmation of strategy style
   As market is more and more mature, survival environment of modern firms is severer. These firms bear pressures in the process of growth and development. The market environment decides firms¨ profit capability and survival capability. Therefore, each firm must choose strategy cautiously, center on strategy chosen, make certain development direction accurately, occupy the most attractile competitive position, and harmonize works and goals in the process of operation and running in order to guarantee that firms could grow and develop steadily along their own tracks. Different firm has different strategy thinking. Cost leadership, differentiation, and focus strategy is three generic competitive strategies in modern strategy management. The goal of these strategies is to make firms keep ahead in competition. In some industries, this means that a company could attain high profit. While in some other industries, the success of one strategy may be only the necessary condition to get slight profit. One strategy will have function of guidance for whole operation as long as this strategy is implemented and supported by organizational structure effectively and efficiently.


Strategy Breakdown

Strategic goal itself is large-scale and all-around. However, as general goal, general task, and general requirement, strategic goal is benefit for operation as long as it is broke down to concrete goal, concrete task, and concrete requirement. In this way general goal could be broke down to concrete goal and concrete task in different aspects in space and long-term goal could be concrete goal and concrete task in different phases in time. The breakdown of strategic goal should be from top to bottom and one by one in order to form sub-goals in departments until basic goals. This will achieve the maneuverability of strategic goal.

Human resource strategy

In the process of development firms will inevitably face questions about human resources. For instance, a new product line, a new marketing channel extension, and so on, requires support of available talents. Thus strategy implementation must be based on talents. It is quite important to consider human resources on strategy layout, because internal and external environments of modern companies change and strategic goals should be adjusted continuously. Competition on talents will be the focus of future rivals. Firms must be cognizant of that the circumstance that you could find out the talents you want is disappeared. Therefore companies must effectively design and implement human resource strategy in order to guarantee and satisfy human resource requirements of firms in development.
 product research and development strategy
With the development of industries, rivals are more and more fierce. Product life cycle shortens. Thus firms need to reply to competitive pressures from a flow of substitutes. Systemic and specific research and development strategy provides guidance for development of firms¨ product fields. Continuous new technologies and products will provide support for companies to occupy preponderant competition position in market.
 marketing strategy
Ambiguous marketing strategy choice will lead to blindness of marketing works, which will not provide effective supports for strategy development and core competitive advantages. The development of marketing strategy of Western firms has three main stages, including mass marketing, diversification marketing, and niche marketing, because of changes of external environments. With improvement of throughput, transformation from seller¨s market to buyer¨s market, values from product diversification, and fierce rivals, market is mature gradually. An outstanding change in marketing strategy development is the transformation from planning according to firms¨ circumstances to real satisfaction on clients¨ requirements. This will make firms find out feasible marketing penetration points.

Investment Strategy

Investment strategy is to invest on human resource, finance, and material in order to form competitive advantages according to firms¨ circumstances. It is different from other strategies because investment strategy maintains and develops chosen strategy to guarantee competitive advantages through investment on human resource, finance, and material. Particularly, firms devote more resources on R&D and marketing so as to maintain and to develop special competitive forces. When firms choose investment strategy, they must hold the yardstick of cost of maintaining and developing competitive strategy in order to evaluate potential revenue of investment on one competitive strategy and to estimate profit. Thus firms should choose investment strategy exactly suited their own conditions according to their competition status and the phase of industry life cycle. From this point of view, there are six general investment strategies, including market share increase strategy, growth strategy, payoff strategy, focus and decrease strategy, transformation strategy, and liquidation and withdrawal strategy. Each investment strategy has distinct features in different phases of life cycle. Features of general investment strategy:

Strategy Types Competition Positioning Investment share increase strategy
  development phase
  rectification phase
  other phases

strengthening position
strengthening position
strengthening position

moderate investment
large investment
huge investment
 2.growth strategy maintaining position large investment
 3.payoff strategy maintaining position large investment
 4.focus and decrease strategy debasing goals to the lowest defense level investment return strategy moderately
 5.transformation strategy ameliorating position  small to moderate investment
 6.liquidation and withdrawal strategy no position negative investment

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