Research On Competitive Strategy Of JD Ceramic Company

Changes in the real estate market directly affect the demand for architectural ceramics.With the development of the national infrastructure and the real estate industry, thearchitectural ceramics market has been developing rapidly. Since1993, the production outputof architectural ceramics in China has consistently ranked first in the world, and China is alsoa big consumer of the architectural ceramics worldwide. Currently there are more than3,000architectural ceramics enterprises with production output reaching90million square metersand the total value of20billion Yuan each year. But since2011, the architectural ceramicsmarket has slowed down due to the changes of the national macro-economy and the impact ofthe real estate industry downturn, followed by excess capacity and the producthomogenization resulted from severe competition. The competitiveness of enterprises in theconstruction ceramics industry is a multi-competition–the competition among the industryclusters, the competition in the strategy groups from the same industrial cluster, and thecompetition within the strategic groups. Located in Foshan, JD Ceramics faces fiercecompetition from local industry clusters and strategy groups who apply the multi-brandstrategy. How could JD Ceramic get the comparative advantage during the industrialtransformation and upgrading? JD Ceramics needs to use the competitive strategy asdirections, and the strategic measures&path as an action guide.This paper has applied common enterprise strategy theories–SWOT analysis, PESTanalysis, Porter’s five forces model, value chain analysis and in-depth analysis of companyresources on the basis of internal and external environment, to seek a competition strategywhich will strengthen current advantages, seize the opportunity, mitigate disadvantages andavoid the threat. The article is divided into five parts. The first chapter is an introduction onthe research background and significance, literature review, research ideas and structure, topave the way for the analysis in following chapters. The second chapter is focused on theexternal environment analysis of the construction ceramics industry. In this chapter PESTanalysis and Porter Five Forces Model analysis have been applied. It focuses on the analysisof the macro environment, industry competitive environment and competitors of theconstruction ceramics industry. Through those analyses, the opportunities and threats in theindustry are obtained. The third chapter is stressed on the analysis of company’s internalenvironment and development history. Using the value chain theory, the specific strengths and weaknesses have been identified in terms of R&D, procurement, production, marketing,human resources, financial etc. In chapter four, on the basis of the analysis in chapter two andthree, SWOT has been used to identify alternative competitive strategies, then to determinethe market positioning and target customers combined with the company’s strategic intent.Finally through analysis and evaluation on all alternative competitive strategies, thecompany’s specific competitive strategy is selected. The specific implementation of thecompany strategy is discussed in chapter five, from the aspects of optimization of humanresources, corporate culture, technological innovation, marketing services and other areas ofinnovation and exploration. Finally, a summary and outlook is given for the whole research.