Research On LX Chemical Competition Strategy

Since2010LX holding company has started to purchase and rebuild some coal companies and chemical subsidiaries. And the companies are put under the platform of LX chemical industry. It hopes that fine chemical industry and new materials business based on coal chemical industry can be developed greatly. LX comprehensive analysis of the chemical in the domestic chemical energy and resources, the positioning in the coal-based methanol, methanol to olefins to produce new chemical materials and fine chemicals, to build a large scale and influential, with comprehensive competitiveness chemical industrial clusters. Currently, LX chemicals in the Southwest has an annual output of1.4million tons of coal companies, shares of the company800,000tons of methanol production enterprises, plans to build one million tons of methanol to olefins project in the Southwest, an annual output of200,000tons of poly propylene (PP),10million tons of ethylene-vinyl acetate copolymer (EVA) devices. The total planned investment7.3billion yuan, the plant built, sales revenue exceeded100billion yuan.This paper comes up with the research methods and research ideas based on the research into the overseas and domestic competitive strategy and chemical industry By researching on competitive strategy of LX chemical industry. first of all, it analyses the developing trend of chemical industry. Meanwhile, it analyses and compares the typical chemical enterprises. So it proves the correctness of proposing developing strategy of LX chemical industry. Then the paper uses Potter’s five forces model to analyze the competition environment faced by LX chemical industry. At last, it uses SWOT method to analyze the internal advantages, disadvantages, opportunities and threats that LX chemical industry are facing. So the paper puts forward cost leadership strategy that are suitable for LX chemical industry. And it also puts forward the specific measures. First, establish integrated management system of parent and subsidiary companies. Second, adjust the chemical and layout of the main industry chain. Third, accelerate the construction and layout of the main industry chain. At last, replicate and develop the LX root culture.