A Study On Competitive Strategy For Shandong Qingdao Tobacco Corporation

Having been playing an especially important role in national economy system, tobacco enterprises have gained sustainable development in a long term relying on their administrative monopoly position. However, along with the repaid development of policy environment and social environment, competitive situation of tobacco industry have changed dramatically. How to compete successfully in this sever environment has become a significant important focus of both academic and realistic circle.Having selected Shandong Qingdao tobacco corporation as research sample, this thesis has analyzed its political environment, economic environment, social environment and competitive situation with the use of a set of theories including strategic management theory, system theory and synergetic theory. Using IFEM and EFEM, the strengthen point and weak points within the corporation have also been discussed. According to the analyzing results, it is found out that differential competitive strategy is the most optimal strategy for Shandong Qingdao tobacco corporation so as to gain a sustainable development in the long run.To be specific, our research conclusions include:firstly, there are opportunities as well as threats in the exterior environment of Shandong Qingdao tobacco corporation. The warming economic environment, stable administrative monopoly position, customers’ increasing consuming power and products’ low demanding elasticity can be summarized as corporation’s growth opportunity, while the restraining power of political and social environment, the change of customers’ consuming concept, media’s negative advertising effect can be summarized as corporation’s growth threats. Secondly, Shandong Qingdao tobacco corporation has well-managed organization structure, complete culture system, solid capital reservation which are advancing its developing power. However, the lacking of transformative development concept, unbalanced human resource structure and single profit model are corporation’s weak points restraining its development. Finally, Shandong Qingdao tobacco corporation should select differential competitive strategy system, which is a combination of product and brand differential strategy, so as to realize sustainable growth by avoiding the threats and risk from social and political environment.