Hengtong Low-cost Strategy

The chemical industry is a basic industry, as one of pillar industries of national economy, industry related degree strong promotion and national economy be closely bound up. Although the 2008 financial crisis on China's economy to a certain impact, but China's chemical industry still maintains high speed development. Among them, the chlor-alkali industry is booming, with various senior corporate management personnel of the introduction of the theory of knowledge, and continuously improve the level of technology, economy, economy of scale, the integration of economy and intensive to manage the benefits of understanding more clearly. Therefore, the enterprises have to improve production technology, the expansion of production capacity, to the integration of upstream and downstream direction of development, and constantly develop downstream products, tensile products chain, increase product added value. In addition to many crude salt production enterprises using salt resources and policy orientation in chlor alkali industry, leading to fierce competition in chlor-alkali industry.This year is " national economy in the Twelfth Five Year Plan " of a bureau year, many policies and regulations around the" Twelfth Five-Year Plan" to develop. This paper aims to be the strategic management theory knowledge and Hengtong chemical characteristics as well as the" Twelfth Five-Year Plan" of Hengtong chemical combination, in the fierce market competition environment, how to choose and implement suitable competition strategy and build their unique competitive advantage, implementation spans type develops greatly. This paper mainly uses the strategic management theory with the method of system analysis, based on the actual situation and chemicals, chlor-alkali industry present situation and development trend, mainly studies the competitive strategy of Hengtong chemical selection problem and the final choice for the company's development strategy. This paper uses PEST, value chain analysis method of Hengtong chemical macro external environment ( such as: political and legal, social and cultural, technical and economic ) and industry present situation and trend analysis of external environment. Then, introduced the development overview, from resource and ability based on value chain analysis method of Hengtong chemical internal environment analysis. Through the above analysis clearly Hengtong chemical industry facing opportunities and threats, find out the advantages and disadvantages of Hengtong chemical. The use of SWOT matrix, the Hengtong chemical opportunities and threats, advantages and disadvantages for evaluation and strategy. Through the analysis of matching to determine Hengtong chemical industry should choose the strategy of low cost for their own competitive strategy. Then, according to the nature of Hengtong chemical industry, enterprise resource status, technical conditions, economic environment and other aspects of comprehensive consideration, think Hengtong chemical low cost strategy should be implemented mainly should from economies of scale, product chain extension (i.e., vertical integration ), comprehensive utilization, recycling economy, production management and other aspects to consider the implementation of. Finally, developed to strengthen human resources management, do a good job in material supply, marketing management, strengthen the construction of enterprise culture and a series of low cost in accordance with their own actual conditions and the characteristics of low cost strategy implementation of safeguard measures.