| Petrochemical Industry is the one of the most important industries to each country's economic in the world. And the market of Methanol is one of the basic markets of the Petrochemical Industry as well.With the conversion of market consumption of methanol in the world, China is becoming the center of demand and it will attract all of the major suppliers of methanol in the world to earn the marketing share and profit.Petronas Methanol Labuan Sdn Bhd (PML) is one of the international suppliers of methanol product. Due to building up a new equipment with producing capacity of 1.7 million tons per annual in 2008, the company wishes to win the competition in the future ie. in the China methanol market.The paper is mainly on discussion of competitive strategy of PML while the company is going to come into the Chinese methanol market.According to the analysis on environment of global methanol market, the paper shows that the supply in the global market is far beyond the demand. That will cause the stronger competition among the methanol suppliers in the world. And the market price will be kept on reducing due to the more and more strong competition.By comparing to the respects between international suppliers and domestic suppliers, the paper shows that international suppliers have the obvious advantages on terms of cost, producing capacity, producing technology, logistics, and management etc.Above two parts are composed of the basic of PML competitive strategy, that is the Low-cost strategy. As an international methanol supplier, Low-cost Strategy is the most effective way to break through the barriers of China's methanol market to earn the positive attitude and ideal margin .By using Micheal Porter's 5-force model and SWOT matrix, the paper anaylses the inner conditions of PML. The company has the fixed and stable resource of Natural Gas as raw material, and it also has fixed and efficient merchant fleet as the place of logistics. Both raw material resource and the merchant fleet are belong to Petronas which is the parent enterprise of PML. Besides those, PML builds up the equipment by using Lurgi technology. With the most advanced producing technology, PML can meet all requires on product specification. Those advantages support the PML's Low-cost Strategy.Even PML has its own advantages, some other terms are not satisfied such as Trainning, HR Management, Product Quanlity Controll etc. Those shortages are needed to be improved under the guidance of PML's Low-cost Strategy.Since the methanol is a kind of products with low value, standard specification and mass production, PML's Low-cost Strategy does not mean the simple price cutting, it refers to the collocation of all steps of PML's whole Value Chain such as its management, logistics, Quanlity Controll, sales & marketing, etc to obtain the integrated advantage on terms of cost . The paper describes the details of those steps working out the result of PML's core advantage of competition. That is the interpretation of PML's Low-cost Strategy.At the last part of the paper, suggestions are given to Chinese methanol producing enterprises on the base of the study of PML's Low-cost Strategy. |
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