Research On Competitive Strategy Of QC Company

"Pesticide Industry Policy" published on September 19,2010 stipulates that the number of pesticide companies will reduce by 30%, and the sales amount of Top 20 pesticide enterprises will reach above 50% of the total amount by 2015, and will above 70% by 2020; Through business mergers and acquisitions, the large enterprises will expand and develop, while some backward enterprises will be knocked out to realize industry concentration. Meanwhile, some world's pesticide giants enter Chinese market one by one in recent years, in the form of joint venture or wholly-owned, which results in the intensive competition. Thus, making a good and suitable competitive strategy becomes very important. Through the study on QC's competitive strategy, this paper aims to improve its strategic management level and achieve its sound and rapid development.By the use of PEST analytic method, this paper analyzes the business macro-environment and points out the important influential exterior factors of making the competitive strategy for a pesticide company, that is the opportunity and threat. The main opportunities are:Chinese agriculture development promotes pesticide market demand, national pesticide industry policy encourages industry stronger and larger, stable market demand abroad and the bright prospect of new pesticide. Meanwhile, pesticide industry faces threats like foreign companies occupy Chinese market and the price of raw material raises due to short supple of energy. By the use of External Factors Evaluation (EFE) Matrix, this paper evaluates the exterior environment synthetically. Through analysis, it shows that opportunities are more than threatens and company is in the good industry environment. Next, the paper analyzes company inner resources and abilities, and evaluates the basic and adjuvant value-added activities by use of value chain tool, and it points out that the interior advantage mainly lies in strong technical exploring ability, marketing capability and brand advantage, and also points out the disadvantage of weak capital operation ability and poor executive ability. By use of internal Factor Evaluation (IFE) Matrix, this paper analyzes the advantage and disadvantage, and points out the interior factors make QC company in the strong position. Based on the management concepts and strategic objectives, it analyzes the industry competitive situation and the feasibility of the three competitive strategies QC could choose. Then it uses the quantificational strategy plan matrix (QSPM) to choose the proper competitive strategy of QC, that is the differentiated strategy. Finally, this paper puts forward the effective safeguard measures of competitive strategy. The main measures include strengthening brand strategy, promoting over-all quality management, optimizing marketing channels, improving technical exploring ability, setting up payment system based on executive ability, improving project management and setting up the strategic control system, etc.