| Entering 20 century's end,Chinese capital policy has become open.Because of the polyester industry's high profit margin(polyester slice's profit reached as high as about 2,000 Yuans per ton at that time),polyester industry has attracted a massive private capital.Because domestic polyester technology had slowly become mature and the investment per unit had dropped accordingly,Chinese polyester industry got a remarkable development.In 2000,Chinese polyester output was 5.95 million tons,but in 2003 it soared to 12.6 million tons.Polyester output doubled in less than 3 years.Through recent years' quick development(with annual growth rate over 20%),China has become one of the largest polyester manufacturers of the world.But at the same time,because the polyester output's growth has surpassed the domestic demand's growth,China can't balance the supply and the demand. So China had to export the polyester remainder,which may cause low price export competition.The prospect of the industrial gross profit will not be optimistic.Therefore,by the quick development of Chinese polyester industry and the rapid expansion of private enterprises,Chinese polyester industry has undergone deep structure change.As a result of economic globalization,foreign polyester enterprises have appeared as a new force in China.Chinese polyester industrial competitive pattern has changed.State-owned enterprises are no longer the only polyester manufacturers.By the expansion of the polyester output,the profit margin tends to drop.In the recent years,because state-owned polyester business developed slowly,it has been losing its leading position gradually.Its weakness of high investment and high cost has challenged its ability of survival and development.YCFC is the largest domestic manufacturer of chemical fiber and its raw materials.The company's assets amounted to more than 10 billion Yuans.It once held an absolute leading position in Chinese chemical fiber market.However due to the rapid development of Chinese polyester chemical fiber industry in these years,its market share has dropped from about a peak of 60% to about 8%.Its past dominant position has disappeared,its market influence has also decreased.As the largest domestic polyester manufacturer now,YCFC's market share became the target of private enterprises in the segment markets of some kinds of polyester and some local markets. YCFC is facing an unprecedented challenge of survival and development.Although facing the intense competition of polyester market,the industry has a new opportunity to apply and develop new varieties of polyester because of natural growth of population,the upgrade of living standard,the change of consumer viewpoint and the development of astronautics,aviation,ocean development,new energy utilization,bio-medical engineering,electronic communication and the emergence of new industries.Therefore,it is urgent to examine the development strategy of YCFC under this new situation and enhance its core competitiveness.At present the price of upstream petrol products miantains high, and the export of downstream textile products can hardly maintain rapid growth because of American and European trade protectionism. In addition, the full opening of China's chemical fiber industry leads to overheated investment. All these result in cruel competition in normal chemical fiber products. Although YCFC has the disadvantages of inflexible of employment, high management costs, etc, the company has the advantages of strong technical force, sound financial structure and good management. Therefore the paper put forward a basic competition strategy for YCFC i.e developing cultural advantages through education, developing technical advantage byintensifying R&D, developing management advantage by institutional reform and developing market advantage by product readjustment. The paper tries to find a feasible road for large scale state-owned polyster manufacturer to develop core competitiveness and realize survival and development goal in fierce market competition. |
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