Study On Competitive Strategy Of YX Chemical Co.,Ltd

Enterprise strategy management is a series of business management combined by enterprise daily business decisions and long-term planning, and playing an important role of enterprise development. Put forward the theory of competitive strategy of Michael Potter, the rise and fall of an enterprise depends mainly on the structure of the industry and the choice of competition strategy of the enterprise. YX Chemical Co.,Ltd take Weifang Chemical Co., Ltd. as the main body, in January17,2000established in accordance with the law, its main business is chlorinated polyethylene (CPE) production and sales. YX Chemical Co.,Ltd is the Chinese dominated CPE production and sales industry, is currently the world’s most important R&D and production enterprises of chlorine containing polymers. In2013February, with the reorganization of Shandong salt group on YX chemistry and the fifth session of the board of directors declared, marking the YX chemistry come into the province enterprises, and will enter a new development stage from the organization form and operation mechanism. At present, YX chemical is preceding the full implementation of the capital, organization, operation, management, product, industry, market structure adjustment by means of restructuring, and strive to maximize the potential advantages, integration, transformation and upgrading, improving efficiency, recasting brilliant enterprises.Under this background, the author studied choice and implementation of competitive strategy of YX chemical Co.,Ltd through analyzing the theory of strategy management and literature review. First of all, the author made a comprehensive analysis to YX chemical’s external environment based on the PEST analysis and five powers model competition mode, and draw the conclusion that opportunity YX chemical facing are:stable political environment; implementation of encouraging enterprises to "go out" policy; social talents increase; developing rapidly information technology; production technology of CPE products industry into maturity; relatively high barriers and small threat of substitutes. threats exist in external environment are:tightened environmental protection policy; unclear international economic development trend; consumers’ improvement of environmental protection requirements; operating costs increased gradually; the fierce competition in the industry; the supplier has strong bargaining power; strong bargaining ability of buyers. Secondly, this paper has carried on the objective evaluation of resources and capabilities of the YX chemical Co.,Ltd,,and draw that compared with other enterprises in the same industry, YX chemical Co.,Ltd has the following advantages: abundant production technical personnel; first-class equipment; large production scale; advanced technology; strong innovation ability; high operation ability and high growth potentially. Disadvantages include:lack of professional marketing staff; less proportion of highly educated staff; weak sales ability; low profitability. Then, using the QSPM matrix analyzed YX chemical competition strategy and find that it should choose differentiation competitive strategy based on cost leading, and explored the way of its realization, the ways are respectively as follows:standardize the internal management, realize management low cost; restructuring production process, realize production low cost; innovate marketing mode, achieve low cost marketing; increase research and development efforts, to achieve product differentiation; undertake social responsibility and realize enterprise image differentiation. And on this basis, put forward the optimization of the organizational structure, shaping corporate culture, strengthen the construction of information, improve the financial management capacity and improve human resources management and other measures to ensure the implementation of YX chemical differentiation competitive strategy based on cost leading advantage.This paper combine theory with practice studies the competition strategy of YX chemical Co., Ltd using the strategic tool, and the conclusion of the study has a positive role in promoting the company competition ability, promote and improve enterprise economic benefits. At the same time, the conclusion of the study can also provide a reference for other companies in the same industry.