Research On Product Portfolio Evaluation And Optimization Of S Company

Since the reform and opening,China’s rapid industrialization and urbanization process has brought huge development opportunities to the coating industry.The production of China’s coating industry has ranked the first in the world for 10 years running,and become a well-deserved world coating production and marketing country.Looking at the international coating market,large multinational companies with strong capital and technological advantages occupy the high-end market and earn high profits.However,there are low-end products and unreasonable structure in the market competition of domestic coating enterprises.How to use scientific methods to optimize the existing product mix is urgent.In this paper,the product mix of S company is evaluated by GE Matrix and the optimization scheme is proposed.Firstly,combining with the characteristics of coating industry,the evaluation system of market attraction and competitiveness is constructed.Then,the corresponding weight of each index and the comprehensive evaluation value of each business are obtained by AHP and fuzzy evaluation method.Finally,the distribution of each business in GE Matrix is obtained and corresponding optimization measures are taken.The conclusions are as follows:(1)the main influencing factors of market attractiveness of coating industry are market scale,competition degree,historical gross profit rate,threat of substitutes and potential entrants,market growth rate,bargaining power of users,political legal environment,bargaining power of suppliers,economic environment and technical environment.(2)The main influencing factors of the competitiveness of coating enterprises are in order of importance: operating revenue,turnover rate of total assets,net profit rate,return rate of total assets,transformation rate of achievements in the past three years,brand awareness,growth rate of operating revenue,proportion of R & D investment,market share and operating gross profit rate.(3)S company should invest heavily in the development of engineering coating and decoration coating business,take development investment in waterproof roll,insulation integrated board,auxiliary materials and construction services,and take selective investment in floor coating,art coating and furniture paint,in which furniture paint tends to withdraw gradually.In this paper,it is considered that the evaluation system of market attraction and competitiveness and the application of GE Matrix have certain reference significance for the coating industry.