Liaohe Lubricating Oil Plant Rubber Oil Market Competition Strategy Research

Liaohe Lube Oil Plant of PetroChina was founded in 2002 under the background of reasonable integrating the production and selling business of refinery and chemical products. Since the plant has a short history, and has no market competition strategy for rubber oil, the market share of the rubber oil decreased. The paper tries to take advantages of itself and catch market opportunities and avoid risks with the help of competition strategy.Based upon a thorough investigation of national rubber oil market, the author adopts the theory of market individualization and target market option, and decides that Liaohe Lube Oil Plant should involve in the competitive target market. The author uses Porter's five competitive power model and analyzes and studies the structure of target market and the major competitors. Then the author adopts SWOT analysis method to study the advantages and disadvantages of Liaohe Lube Oil Plant as well as the opportunities and threats. Finally, a generalized competitive strategy is adopted to determine the market competitive strategy of Liaohe Lube Oil Plant for rubber oil.By way of integrating the relative theories of marketing strategy and the present market situation of rubber oil and Liaohe Lube Oil Plant, it is concluded that naphthene type rubber oil shall take part in the middle-grade rubber oil target market competition while the aromatic type rubber oil shall take part in the low-grade rubber oil target market competition. The reason is that the former has the advantage of advanced total cost and the later has a variety of products. Based upon that the target of Liaohe Lube Oil Plant is set which is to guarantee advanced total cost and products in different categories.With the globalization world wide, national petroleum and petrochemical enterprises are facing more complicated competitive environment and much stronger competitors. However, most of these enterprises were protected by national policies historically, and are relatively weak in reacting to the market and lack of determined competitive strategy. This research not only solves the determination of competitive strategy for Liaohe Lube Oil Plant but also can be used in national petroleum and petrochemical enterprises in its involvement in the international and national marketcompetition.