Shanghai Shenhuo Foil Competition And Strategy Study

Shanghai Shenhuo Aluminium Foil Co.,Ltd is a joint venture establishment originated by Henan Shenhuo Group and Shenmei International investment Co.,Ltd(Hong Kong). The company was founded in March 2004 with a registered capital of 49 million USD and an area of 245, 000m~2, located in Shanghai Pudong Kangqiao industrial Zone. The development plan of the company is divided into two stages. First stage started from March 2005. In this period 0.8 billion RMB was invested, and the annual production capacity of wide side and super-thin aluminum foil was 25,000T/a. This project finished and formally put into production in Jan of 2007. In the second stage will be added 1.2 billion, which is planned to begin with the building preparation from 2010 and complete in the half of 2012. Then the annual production capacity of wide side and super-thin aluminum foil will achieve to be 40,000T/a. After these two stages, the whole annual production capacity of aluminum foil will be 65,000T/a, and the annual sales revenue will be 2.5 billion RMB.Our main product machines are all imported from abroad, with the advanced level of technology in the world. "Shenlong" double zero aluminum foil, as a brand of our company, has been widely used in many packaging, such as food and drink foil, cigarette, medicine and cream product, heat preservation material and video cable etc.In the past few years, the company has been deeply impressed by the rapid development and intense competition of the aluminium foil markets. In this trend, how the company grasps the chance of development, enhances the management skills and designs the future of the enterprises, which will lead to a sustained, stable and healthy development, is an urgent problem to solve. Especially in the current global economic crisis, the export is blocked, consumption is low and the domestic companies has stepped into an increasingly competitive state. Whether the second stage can start as originally planned? How the company can expand the production capacity? How to get rid of stagnancy yield at present? How to improve production technology, enhance product quality, manufacture the high-level products and quickly enter the field of high-end aluminum market? How to introduce into the professional and technical personnel? All of these are the company has to face and solve.For these problems, in this paper the five competitive forces models are built with the relevant theory in "Management economics". The internal and external environmental factors are analysed, and the reasons of each problem are studied, such as the current capacity competition, the unstable quality of products, improvement of finished product rate, the R& D of novel technology and the introduction of specialists and personnel. The proposed methods in this paper can help the company to sort out the ideas of development, find out the market allocation and ultimately actualize the company's ambitious development plans.Through internal and external environmental analysis for development of the industry and Shanghai Shenhuo Aluminum Foil Co., Ltd, internal research & analysis of influencing factors, the conclusions as follows:According to the current economic environment and human intelligent, technology, processing and other factors, the second stage of Shanghai Shenhuo Foil Company should be postponed to start the construction, find out way of merge, carry out low-cost expanding, to rapidly achieve scale effect. After company get benefit, enter to the group's share stock, then to start the second project.In technology R & D, and quality control, it is necessary to establish R & D institution, with R & D staff, good cooperation with industry associations and research institutes, and constantly develop new product and processes to enhance the market adaptability and competitiveness.In the recovery rate control, it is necessary to strengthen management & training, improve to performance appraisal methods, focused on solving pressing, cutting of head and tail's waste products, in order to improve productivity, reduce scrap losses and production costs.In the introduction of talent, we must get the support of Shenhuo Group, for getting senior manager with professional technical, enhancing R&D power, stabilize product quality, expanding market share and increase product prices, to increase the Company's effectiveness.Once a favorable turn for the economic situation, Shanghai Shenhuo Al. foil will be rapid take-off and embarked on the fast track of healthy development, if the above questions can be resolved as soon as possible , further intensify our efforts in the market development and the timely adjust the structure of product and customer.