Research On BASF Catalyst Shanghai Company’s Competition Strategy

As Chinese economic continues development,the PGDI and GDP’s keeping increase also push the automotive industry quick increasing,and leading t he automotive component industry high-speed development.The component considering to be the important support for the automotive industry expend very quickly,in 2016 the annual output value is more than 3000 billion RMB,there are more than 100,000 component suppliers,and foreign-capital enterprises are 20%(wholly foreign-owned enterprise 45%,joint venture 55%),market share up to 70%.Facing such fierce competition,if the company wants to increase the competitiveness,setting a scientific strategy will be very important.This paper take BASF Catalyst(Shanghai)as the investigated subject,at the beginning,do the analysis to the China automotive exhaust catalyst industry’s status,the regulation and also the industry future.Making analysis to the ex ternal environment by PEST,then using Porter’s five forces model to analyze the competitors,the buyer’s bargaining capability,potential entrants to the industry,and the substitutes.Then make deep analysis to the internal by sourcing,financial,core competence to find the internal problem,strength and weakness.Using SWOT,SPACE and Grand Strategy Matrix to get optional strategy,use the AHP method to evaluate different strategies,then setting competitive strategy based on the company’s long-term target,and proposes the detail measure to ensure effective implementation,finally do a series modifications to improve the company’s market competitiveness,to be the leading position.And also I hope this paper can be a reference for the other automotive component companies.