Nanfang Polyester Co.,Ltd.

This article is a didactical case about strategy. It consists of two parts: case and case study.The case presents the history of Nanfang Polyester Co., Ltd. Then it specifies the opportunities and threats of Nanfang. Because the strategy couldn't match its resources and capacities, Nanfang is in a passive position of a strong competition market. At the same time, the market environment of polyester and the main rivals of Nanfang are introduced in the case .In the case study, the theories and principles, which includes "Michael E. Porter, How Competitive Forces Shape Strategy", "SWOT Analysis", "Value Chain Analysis", are applied to analyze enterprise situation, in order to find out the core capacity of Nanfang. Based on the information above, the Focusing and Differential Strategy is reached to develop the competitive advantages. With this strategy, it doesn't focus on the scale of enterprise but on the new and high value of product in the specified market to get high profit. And Vertical Integration would be adapted under the condition of funds accumulation. Ground on these strategies, the strategic alliance and government support are considered effective ways to enhance the competition capacity.