Competition Strategy Of Chem-trend In Magnesium Alloy Releasing Agent Market

China’s economy developed rapidly since1980s, especially the auto industry and the computer, communication, Consumer Electronic. Magnesium alloy can be used in the production of motor vehicles and electronic products because Magnesium alloy has more excellent performance those other metal materials don’t have. Therefore, Magnesium alloy will be used more and more, which will increase the demand of releasing agent of Magnesium alloy. On one hand, factories that produce releasing agent emerge in large numbers. They prefer to lower the price rather than improve the quality of products. It aggravates the competition of this industry. On the other hand, some well-known brands of releasing agent, such as Moresco, Acheson, Hanano, start to establish the research and production base in china in order to seize Chinese market. Chem-trend is large-scale and well-funded, leading to the development of the industry. However, in order to have advantage on the fierce market competition, Chem-trend has to develop flexible competition strategy.This paper adopts questionnaire and theoretical analysis method for Chem-trend’s environment analysis. Firstly, it uses STP strategy analysis method to analyze the subdivided market and to select the target market of Chem-trend. Then, this paper uses PEST analysis tool to analyze the external macro environment in detail and know better the external opportunities and threats, the company’s own advantages and disadvantages through the SWOT tools. Secondly, Chem-trend develops the suitable competition strategy to get further development on the basis of the analysis above. For the domestic releasing agent manufacturers, Chem-trend should adopt the difference-making competition strategy through the quality of products, production processes, and marketing mode in order to strengthen the advantages. What’s more, for the import of magnesium alloy die-casting releasing agent market, the company takes the low cost competition strategy by reducing procurement costs, strengthening the innovation of science and technology; strengthen financial management, human resources management to obtain the cost advantage. Finally, this paper gives the specific implementation plans for the competition strategy of Chem-trend.