Shandong Hongxin Chemical Co., Ltd. Competitive Strategy

Shandong Hongxin Chemicals Stock Co.,Ltd (using the abbreviation SDHX as follows) is the important organic chemical material base in China and is a Sino-Foreign Joint Venture Enterprise. It possesses assets of RMB 880 million and has 500 thousand tons production capacity per year, 260 thousand tons Plasticizer capacity per year. The main products include four series, 30 assortments, especial Plasticizer, Phthalic Anhydride. Unsaturated Polyester Resin and Maleic Anhydride. The company is award with "National Emphasis High-technology Enterprise" and "Emphasis Enterprise Group in Zibo City". Since market changes is becoming more and more dramatic, new technology has been widely spread and competition situation is more serious, SDHX must adapt to the new environment as soon as possible, keep advantage of its productions. The first target promotes rate of market occupancy and profit margin of Plasticizer.In this thesis, based on the modern enterprise strategic management theory, firstly, this paper analyzes the external and internal environment of SDHX; summarizes the external opportunities and threats as well as the internal strength and weakness of the company. The paper adopts value chain theory, core competence theory and SWOT matrix theory. Such thesis points out SDHX should take cost leadership strategy as its selection of basic strategy according to the strategy management theory, combining with SDHX'S practice and analyzing three kinds of competitive strategy. Finally, the paper points out concrete tactics such as basic management, cost leadership, human resource, optimization of value chain, brand strategy, enterprise culture, management information system.The thesis researched competition strategy of SDHX at Plasticizer industry of China for the first time, was a helpful attempt and exploration. Combining theory with practice and quantitative with qualitative analysis, having pertinence, practicability and maneuverability, this thesis provides a meaningful and scientific competence advantage for SDHX in the future development. And the analysis methods and result can be also used as reference in making strategy for other companies.