| Since the end of 1990s, the newspaper industry of China developed fast with the support of government and the protection of antidumping measures. The output of newspaper in China of 2005 is 3409600 tons, which was only 960000 tons in 1998. The qualities of newspaper are better than before and satisfy the need of print Although the consumption of newspaper in China will increase in the future, the competition between the newspaper producers will be fiercer with the sharp increase of output.Huatai Group began to produce newspaper in 2001 and now is the biggest newspaper producer in China with the capacity of 810000 tons per year. Since 2001, the newspaper business of Huatai Group gained a competitive advantage depends on the advanced equipment and high quality product. But its. competitive advantage is weakening because of its competitors' imitation and rapid development.After introducing the situation of Huatai Group and its newspaper business, the thesis analyzes the macro-condition environment of newspaper industry of China, the five competitive strength and the strength and weakness of the newspaper business of Huatai Group. On the basis of above analysis, the thesis states the present competitive strategy of newspaper business of Huatai Group and points out its differentiation competitive strategy which based on the difference of equipment and product will not be sustainable because its competitors are trying to do that. The cost of Huatai Group's newspaper is the lowest among the newspaper producer in China and Huatai Group's clear property structure, good management and efficient mechanism will contribute a lot for Huatai to achieve and keep overall cost leadership in newspaper industry in the future. So Huatai Group's newspaper business should implement low-cost strategy, which will create and sustain its competitive advantage through continuous cost reduction. In the last part, the thesis provides the measures that help Huatai Group's... |
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