The Research Of IGV Company Development Strategy

IGV,formally MWV,is a mid-size multinational specialty chemical company and originally found in US in 1864.It is so far the world leading supplier of activated carbon,lignin dispersants,refined tall oil and asphalt emulsifier and additives.Ever since its entrance into China’s asphalt emulsifier market in the end of 1990’s,IGV has established itself as the undisputed leader in this market segment.However,in recently year IGV’s leading position is under serious challenge and has been losing market share mainly because more and more domestic asphalt emulsifier suppliers start to compete in this growing market.In order to further develop itself or merely to survive in this highly competitive market environment,IGV needs to come out with a competition strategy that can better leverage its competency in R&D capability,cost position and technical service in order to compete with domestic suppliers who can offer lower price,improving product quality and agile channel supply.In this study,relevant methods and various analysis tools of strategy management were used to provide a thorough analysis to IGV’s internal and external environment.A new product development strategy specially designed for China’s market was established in order to further consolidate IGV’s competitive edge in the market.After analyzing the existing market and product offerings,it was decided that the national and provincial roads maintenance market should the target market.This market is of huge volume,above-average quality requirement,but is also highly sensitive to pricing.The target is to increase IGV’s overall market share by the extension of product line through effective new product development.A complete new product development strategy covers the management of new products’ ideation,development,production and marketing.How to help R&D team in US to accurately and completely understand China market and customer’s needs,as well as how to price the new product reasonably in a highly price-sensitive target market are two deciding factors for a successful prosecution of new product development strategy.Taking the development of new product under the guidance of IGV’s new product development strategy as an example,the author provided solutions for the above mentioned two key factors.Commercial achievement in the market is the most explicit way of validating the success of a market strategy.IGV’s strategy should be considered to be successful after receiving positive market response in several representative regions and customers.This study is targeted to provide some guidance and reference for foreign specialty chemical company to better prosecute its new product development strategy and develop specialty chemicals that are more appealing to China’s customers.