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Development Strategy
Development Strategy
 
2007-03-22

(I) Development Objective of Sany Heavy Industry
  To become the benchmark enterprise in China machinery equipment industry by means of reforming machinery equipment industry with hi-tech technology and of taking the lead in updating and upgrading the business products to world first class level.

(II) Management Strategy of Sany Heavy Industry
  Taking “Building First Class Enterprise, Training First Class Talents, Making First Class Contribution” as the task and the Sany Spirit of “Strive Hard without Any Spare, Make Return to State with Industry” as the ideal, to promote the core value of “Quality Changes the World” within the entire company and take “All for Customers, All from Innovation” as the basic operation concept.

1. “1233” Management Strategy Directive Thought
     (1) One Basis – Relying on the talents, to establish human resource management system that based on the company core capability construction and met with the development requirements of modern enterprises and the actual demands of the company, realize the best introduction, utilization, and retaining of the talents, empha the promotion of personnel quality, and build the industry top-ranking RD, marketing, and management backbone teams.

    (2) Two Core Capabilities of RD and service – RD Capability: Ensure the domestic leading position of concrete conveyor machinery, strive to achieve the road construction machinery to domestic top-ranking and achieve the new products of Sany Heavy Equipment to the level of foreign equivalent products. Service Capability: Exceed the standard of counterparts, exceed the expectation of customers, and become the industry benchmark.

    (3) Three Relations: Means the relationship between the scale, benefit, and brand, of which the scale is the basis of benefit as well as the basis of brand, and the scale is in obedience to benefit as the benefit is in obedience to brand.

   (4) Three Utilizations: Utilize the international division of labor, regroup and international market; utilize the opportunities of industry regulation and enterprise regroup brought by the regulation of macro economy; utilize the industry upgrade brought by the progress of new technology.

2. Industry Orientation

Based on the deep analysis on the domestic and world economic situation, market demands, competitors within same sector, and own advantages and disadvantages, the company will implement the specialization management strategy to orient the leading industry in the engineering machinery industry in three years. In addition, taking as the strategic cooperative industry, the company will implement the worldwide lease business that mainly focused on the engineering machinery equipment so as to promote the sales with lease and carry out the lease and sale before the establishment of plants. Based on above conditions, the company will pay great attention on the machinery manufacture industry that highly related to the products of our company, firstly it’s the development of environmental machinery industry, which will be the basis for the entrance of our company into the general machinery manufacture industry.

3. Competition Strategy
To adopt the differentiation strategy for domestic competitors, mainly relying on the differentiation of product, type, quality, and service. The product differentiation is that the company develops the products that being the technical front line of domestic and international counterparts so as to promote the update and upgrade of the products; the type differentiation is that the company implements the strategy of scalization, micromation, and full set realization of product types to avert the blind competition of domestic products that concentrated on the medium level; the quality differentiation is that the company strongly develops the quality products with high technical barriers and weak market competition to supersede the imported products and gradually advance into the international market; the service differentiation is that the company provides the customers with individualized product and service modules by adopting more accurate customer demand analysis and the further subdivision of the market. The overall cost leading strategy is adopted for foreign competitors. The so-called overall cost leading is that the products will enter into the market at relative low price, provided that the product quality is closing to the foreign ones, so as to take part in the competition by taking advantage of the high performance to price ratio. To maintain and strengthen the competitive edge of the company products in terms of cost by further promotion of production ratio of entire personnel and reduction of marketing cost, by means of control of management cost and financial cost and the utilization of current marketing network.

4. Movement Strategy: “One Promotion, Two Reductions, and Three Enhancements”
   One Promotion– To promote overall quality level.
   Two Reductions– To reduce the cost and overstock inventory
   Three Enhancements – To enhance the marketing service, the management of receivables, and optimization of flow.

(III) Space Layout
Summarized as “112236”
1. —— One manufacture center, that means to build the modernized manufacture center with above 30 billion RMB annual production capacity in Changsha that featured relative low labor cost and relative convenient traffic transportation.

1. —— One global procurement and export platform, that means to build global material procurement and export platform in Hong Kong that featured relative developed trading.

2. —— Two markets, that means to face both domestic and international markets.

2. —— Two core capabilities of RD and service, that means to promote two core capabilities of RD and service to world first class level.

3. —— The technical cooperation with Europe, U.S. and Japan, that means to implement wide technical cooperation in the three world most developed regions of Europe, U.S., and Japan.

6. —— Research institutes in six cities, that means to build the remote research institutes in six cities with the most concentration of human resource in China, including Beijing, Shanghai, Shenzhen, Shenyang, Chongqing, and Xi’an.

 

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