Investigation Of Competition Strategy Of LG Chemical Company

Since 1996, the 9th Five-Year plan and the development plan outline to the year 2010 promoting the development and use of chemical construction materials were enacted and implemented, the PVC doors and windows industry have increased with the speed over 20%, which attracted numerous PVC profile corporations competing for this advantageous market. The PVC doors and windows industry in our country have entered a fast development period. This paper expatiated: as the pioneer, the LG Chem. should take the competition strategy for entered the domestic market in 2002 and went off with the markets share of China.Firstly, this paper expatiated on the circumstance of domestic PVC profile, analyzed comprehensively the competition state in this industry, and drew the conclusion that the PVC profile industry has entered the product mature period. Secondly, this author compared the competition state of LG with those of other domestic pioneer corporations in this industry, by the use of the industry competition tactic, the modern management knowledge and so on, and considering the long aim of the LG, this author mainly investigated and analyzed the competition risk and competition advantage of LG. The author put forward the strategy choice, a combination strategy of low-cost and high-difference in metaphase, and gave priority to the long-term strategy of low-cost. The author put forward the corresponding implementation measure and the idiographiccontrol measures. This paper for the first time gives out the idiographic suggestion of competition strategy for the foreign corporations entering domestic markets.