Research On Competitive Strategy Of Zhongshan W Nnitrocellulose Company

In China, nitrocellulose industry start lately and the development of itis slow.In order to change the short supply situation, nitrocellulose companies must be bigger and stronger.Not only it need to improve production processes and technology, but also need to strengthen the company’s strategic management, and optimize the allocation of resources, and improve the profits of the company. The paper usesPEST analysis model and Porter’s five forces model as well as SWOTanalysis. Firstly, the background and current situation of nitric acid fiber industry are described, and the significance, research status, research content, research methods, the school and type ofcompetitive strategies of Zhongshan W nitrocellulosecompany are explained. Secondly, the company’s internal environments are discussed from the aspects of overview, human resources, financial resources, intangible assets, research and development, production management, marketing, and organizational management facets.Thirdly, the company’s external environments are discussed from the aspects of macro-environmental factors of legal, economics, society, culture, technology and industry factors of cigarette filter production, supply and demand situation and market structure. At last, through analyzingthree types of competitive strategies, select optimal competitive strategyof the company are selected and the corresponding safeguards are proposed. The paper has the following main conclusions:(1) Due to government regulation, the competition degree of domestic nitrocellulose market is lower, and there are high barriers to entry.The company should meet changing customer consumption concept through product diversification strategy, and minimize environmental pollution and destruction.Nitrocellulose market prospects will not have a significant volatility in a short time,and the bargaining power of Zhongshan W nitrocellulose company is at a disadvantage.(2) While Zhongshan W nitrocellulose company has established a relatively perfect management system, but also need to attract more high-quality professional and technical personnel. The companyrapidlyimproves theirR&D capacity through the organization of technical exchanges in industry, andthe declaration of the various research projects. By setting the proper centralization and decentralization, the company is able to obtain maximum profits and improve operational efficiency. Zhongshan W nitrocellulose company can gradually cultivate and develop core competenciesthrough increasingR&D investment.(3) According to the current development situation and competitive environment of the company, Zhongshan W nitrocellulose company should choose the decentralization strategy. In order to ensure the smooth implementation of competitive strategy, the company should increase R&D investment of the production technology, and optimize the organizational structure of the company, and develop a comprehensive safety regulations, and create a nitrocellulose brand which is widely recognized in cigarette industry, and establish a sound quality management system, and create a healthy and positive company culture, and optimize raw material procurement processes.