The Research On Competitive Strategy Of SL Company

Shandong SL Corporation was founded in 1995, and after the corporation established its strategic target of being the leading corporation in the field of biotechnology in 2000, the corporation made full access to the R&D of biotechnology. In 2003, as the biological engineering estate put into operation and passed the national GMP certification, the SL Corporation launched the biotechnology industry on the basis of the global market. The reason why the production of Shandong SL Corporation was not steady and the price was on the decline is that as follows. To begin with, the Xing ding corporation is changing its role from a customer to a competitor. What is more, the quality stability of the product is not so good, which makes people have preconception about it. Also, the product has some deficiencies in brand image and service quality. Last but not the least, competitors is developing rapidly.This paper summarizes the external environment of SL Corporation and analyzes the macro environment, industry development trend, industry competition structure and key success factors of the corporation. Based on the above analysis, the paper summarizes and refines out the opportunities and the threats SL Corporation confronted with. One of the external opportunities is sustained and stable development of agriculture and animal husbandry. Also, the support from the country is an important driving force for the development of livestock feed additive industry in the past three years,the market has developed stability; while the use and production standards increased, to some extent, improving the trade barriers. External threats can be seen clearly:rising prices of raw materials cost pressures hit, which has affected the profitability of the enterprise space; at the same time, although trade barriers increase, at this stage, enramycin industry concentration is increasing, competition makes the industry start further compressed margins, price war starts; the increasing technical standard of the country, as well as international restrictions on the use of antibiotics, have greatly affected the future development direction.In the process of the internal environment analysis of the corporation, this paper modeling enterprise’s value chain model, and analyzes the advantages and disadvantages of the activities in the value chain in detail.On this basis, this paper analyzes the internal resources and capacity of SL Corporation and sums up the advantages and disadvantages of the enterprise.The company has obvious advantages:SL has a strong procurement appeal so that SL has procurement cost advantages in a certain degree; SL has strict quality management system to ensure the safety and quality of products; and the advantages of human resources, customer management given the advantages of cost management advantages. At the same time, the existence of the internal problems cannot be ignored:the slow speed of R&D leads to the slow speed of industrialization, the close product features positioning impede theadjustment of product structure, all about these are the important obstacle to enterprise growth and development; as personnel training and organizational problems of enterprises also need further attention.This article summarizes the SL Corporation’s external environment and internal environment, on this basis, this paper analyzes the future trends SL enterprise’s industry, as well as their own resource and capacity. Meanwhile, this paper references Michael Porter’s theory of competitive strategy, analyzes the feasibility of the four strategies. On the basis of quantitative analysis, finally, we determine the competitive strategy of SL Corporation is integrated cost leadership/differentiation strategy. This paper argues that, the industry which SL corporation lies has a upraise of its raw material’s price, also the industry concentration is high, because of these, the competition began to be intensify, a price war among competitors has already began. In order to own market share, so the SL companies need to minimize costs in order to gain a competitive advantage in a price war. Meanwhile, due to the immaturity of technology products, resulting in an unstable product quality in the industry, in this case, to improve product quality and service levels will be the key to victory.The result of the research results can provide a reference for the pre-feed additives company to further expand the market space and a professional analysis of the competitive environment, furthermore the result can put forward some reference during strategy formulation in other companies in the industry.Also, the results not only can be valuable for the SL Corporation, while it also has a certain reference value for associated pre-feed additive industry.