Competitive Strategy Of China's Tea Industry

In recent years, China's tea drinks industry has been growing rapidly. Following carbonated drinks, bottled water, fruit juice drinks tea drinks developed fast. Tea drinks is not only thirst-quenching, but also has nutritious, healthful function. In the 1990s, tea drinks is the fastest-growing beverage in Europe and America. Internationally known as the"new generation drinks", tea drinks was considered to meet modern pursuit of advocating nature, green consumption.China has a long history of tea culture, due to the history of tea culture accumulation and changes in consumer attitudes, many people have accepted the tea drinks. As a result, a good basis for tea drinks consumption is laid. Since the 21st century, Chinese tea drinks consumption market has been almost 30% annual growth rate, accounting for 20% of market share in China's beverage consumption , more than fruit juice drinks, a great catch-up potential of carbonated drinks. With the emergence of tea drinks and the market boom, Chinese tea drinks industry will have a brighter future. Beverage market in the 21st century will be the century of tea drinks that will become"the king of beverages."However, China's tea drink has a relatively short time development, market development focused on the large and medium cities, small cities and rural market development is still in the initial stage. As the tea drinks has market prospects and make substantial profits, the influx of a large number of enterprises in the tea drinks industry, resulting in quite a mixed bag of tea drinks industry than others. At present, as a whole, technical level in China's tea drinks industry is not high, flavored tea drinks still account for a major market. Tea drinks enterprises in China as a whole is still stuck in doing the product stage; the imperfections of the brand management concept and management philosophy of non-systematic, making China's tea drinks enterprises are not competitive. From the view of the number and scale of enterprises, China's tea drinks industry is also still in the growth stage…….To solve these problems, China's tea drinks business strategy to be adopted to improve competitive? On the basis of Michael Porter's"Five strength model", this paper analysis above problems and put forward corresponding countermeasures."Five strength models"was put forward by Michael Porter, he thinks there are five kinds of strength that decide the competition scale and extent in the trade, influences synthetically the appeal of the industry. It is a kind of valid tool to analysis the competition characteristic of the trade. Five kinds of strength involved in the model include: The new rival invades, the threat of the substitute, buyers' ability of negotiation price, suppliers' ability of negotiation price and the competition among many competitors. On the basis of the above approach, this paper put forward corresponding countermeasures:(1)to reduce the bargaining ability of buyers ,through forming the unique nature of the product itself because of differentiation;(2) to reduce the threat of substitutes ,through continuous research development of new products and emphasis on product functionality;(3)to reduce the bargaining ability of suppliers ,through the strengthening of vertical integration;(4)to reduce the invasion of new competitors and enhance the competitiveness of existing competitors, through economies of scale as a result of diversification of production, as well as running ads in order to expand enterprise scale.