How does external environment in China affect Tongrentang's strategic choices?

Abstract

In recent years, under the changes of China ’s population structure and the increasing pressure on people ’s lives, the problem of “sub-health” is becoming more and more common. The implementation of the "13th Five-Year Plan" and the promulgation and implementation of the "Traditional Chinese medicine（TCM）Law" reflect the government's policy guidance to support and encourage the TCM industry. The development of TCM has risen to the height of national strategy. In the large health industry, TCM and the related industries are receiving more and more attention and recognition, The TCM industry has ushered in new opportunities for rapid development. Tongrentang company（TRT） is a Chinese TCM company with a long history and a benchmark TCM company in China.However, In recent years, the company's performance has maintained stable development as the Chinese economy has entered a new medium-speed growth period. This thesis attempts to make reasonable strategic choices by analyzing the external environment of Tongrentang, and provide useful inspiration and suggestions. The first chapter clarifies the research background and significance of this thesis, and explains the main research content and framework. The next chapter is focus on analyzing the external environment of China and the impact on the development of the TCM industry by using the PESTEL analysis theory,which focus on the analysis of the political,economic, social and cultural ,and technological environment that Beijing Tongrentang Group Co., Ltd. are facing. At the same time, combined with Porter's five-force analysis method, which simply analyzes the competitive environment, so as to summarize the opportunities and challenges that the Tongrentang are facing. The last chapter is the conclusion and suggestion part, which trying to make suggestions for Tongrentang's Strategy choices,including the culture strategy and production strategy through the above specific analysis, and provide the beneficial enlightenment to the development of TCM industry.