Study On The Oil Products Competitive Strategy Of Sinopec Changsha Company

Oil sales industry is still a monopolized industry in China. Sinopec and PetroChina are two magnates which take very large shares in domestic oil products sales industry. Sinopec has taken75%share in Changsha, the provincial city in Hunan province, where Sinopec has run and developed for many years. However, with the mechanism of oil product prices adjustment and the reduction of the access threshold, the major competitor, China National Petroleum Corporation as well as other institutes home and abroad join the battle of oil sales. From then on, the competition in oil products market is becoming fiercer in Changsha.This paper, theoretically and practically discusses the competitive strategies in oil products market made by Sinopec Changsha Company. It first introduces its research topic by examining both the development of and the competition in oil products industry. Then its research methods and research design are expounded on the basis of relevant theories. The main body first focuses on external environment. It briefly discusses the elements of general environment by making use of the analytical method of PEST. It also makes a detailed analysis of the composing of competitors by making use of Michael E. Porter’s Five Forces Model of Competition. Then comes internal environment. It briefly introduces the establishing background of Sinopec Company at national, provincial and municipal level. A brief exposition of the internal and external resource advantages of Sinopec Changsha Company is given. It points out the problems it faces in the fierce market competition under its present operating condition. By employing SWOT, it expounds the advantages and disadvantages as well as the opportunities and challenges the company is facing. The analytical results are compared and selected to define the target, the emphasis and the content of competition strategy. Finally, this paper designs a set of suitable market competition strategies and a system of implementation for Sinopec Changsha Company in response to the fierce market competition.In order to defeat the competitors in the fierce oil products market, Sinopec Changsha Company must develop the strategies and put them into practice, prompt the enterprise to develop faster and better through a set of effective strategic combinations. The implementation of the strategies will contribute to improving the performance of the enterprise and promoting the image of the enterprise, which can help the company to further consolidate its monopoly position in oil products market.