Studies On Compete The Strategy Of Sichuan Red Phosphorus Chemistry Corporation Limited

Ammonium phosphate, one of the efficient fertilizers needed by plants, has a history of over 100 years of producing and applying in developed countries and areas. The whole supply amount in the world now is generally much more than that is needed, and it is predicted that to 2006 the supply amount will still be 5% more than the productive forces. In our country, though the ammonium phosphate stepped some late, it grew very quickly, and it almost reaches saturation through the 20 years development. With China's entering into WTO, state produced ammonium phosphate is facing more and more fierce market competition because of the great coming of the same foreign products. The working unit of the writer, Sichuan Red Phosphorus Chemistry Corporation Limited (SRPC) is the first factory in the country producing ammonium phosphate. It has kept the leading position in the same industry in the country for a long time because it started early and it leaded in the technology, as well as it profited from the traditional planned economic system. But with the transfer of the economy from planned system to market oriented economy and the abrupt rise of foreign competitors, this company has quickly lost its first place in the industry and falls into management depression. Facially seen, the reason why SRPC falls into depression is because of the keeping decrease of sales amount and the market occupation rate keeps going down, but through the inspection of the inner and outer environment of the company, especially through the comparing analysis of the main competitors of the company by the five competition forces, I believe that the root cause is the disadvantage in production cost.According to the years of working experience in the company and the theory study of MBA, combined with the features of ammonium phosphate, I put forward that industries like SRPC which produce and market products in large quantity that has been standardized should analyze the environment inside and outside the company, carefully study the composition of the cost of product, find the key links that affect the costs by using Theory of Value Chain, take a whole set of measures to decrease the cost. By the strategy of decreasing total cost, they can defeat the competitors. In the mean time, this article aims to give some enlightenment and reference to companies in difficulties.In theory, this article takes SRPC as a sample and analyses it carefully by using theories of Five Competition Powers, Value Chain, Competition Strategy and 4PS Marketing. I hope it will have some instruction and reference meaning. In practice, I think that some companies in this industry paid more to tactics in their real production management decision process, which has not much meaning in practice since they are more of aimless imitation and short time measures that apply palliative remedies, but less to strategy of highly system aspect to analyze the inside factors and the outside environment so to formulate policies to defeat the competitors. This articles analyses the inside and outside environment of SRPC, studies the selection and design of the competition strategy and the detail processing measures, which is a practical case study of useful reference for companies in this industry.Furthermore, through the study of the environment protection practice of SRPC, this article believes that only when the three wastes (waste water, waste gas, waste industrial residue) problem is seriously taken and well processed can the companies realize sustainable development.