Study On Competitive Strategy And Implementation Of DL Coatings

Over the past two decades since China’s accession to the WTO,China’s automobile market has been booming and maintained a high growth rate.Since 2009,China’s annual production and sales of cars ranked first in the world,becoming the world’s largest car production and marketing country.With the growth of automobile production,sales and ownership,it also brings a good development opportunity to automobile coating market.China’s automotive coatings output reached 2.2 million tons in 2018,accounting for 9.6 percent of the total coatings market.It is expected that the compound growth rate of automotive coating output will be 9% from 2019 to2022,and the annual output scale is expected to break through 3 million tons by 2022.Among them,the output of refinish coatings account for about 26% of the total automobile coatings output,only second to the output of original equipment manufacturer(OEM)coatings which account for 44%.At present,domestic refinish coating market competitors,after nearly 20 years of development,the rise of a number of domestic independent refinish coating brands and enterprises.Although the total sales volume of domestic refinish coating brands accounts for as high as 70% of the total sales volume of the entire refinish coating market,they are basically concentrated in the low-end market with very low profit margins.In the middle and high-end market with high profit margins,many international paint enterprises still occupy most of the market share.DL is the only Chinese refinish coating enterprise that has entered the top four market share of refinish coating.DL company since its establishment,has been focusing on the research and development of refinish coating and market sales,has maintained a steady growth,in the domestic refinish industry is the only refinish enterprises that can compete with PPG,BASF,Axalta and other world paint companies,shouldering the revitalization of the national automotive coating brand important task.In recent years,as the paint repair industry has entered the mature period,raw material prices continue to rise,the industry environmental standards continue to improve the market background,DL company is necessary to adjust its competitive strategy,in order to cope with the continued hot market competition pressure,improving the market share.This paper is developed in this context.This paper starts from the development status of DL company,takes strategic group analysis,competitor analysis framework,Porter’s five Forces model,SWOTanalysis and other theories as the guidance basis,and takes DL company’s current competitive strategy as the research object to carry out research and analysis.First of all,the macro environment of DL company and the environment of refinish coating industry are analyzed,and the existing competitors of DL company are identified by Porter’s strategic group analysis.Secondly,it makes an in-depth analysis on the competitors of DL company by using the framework of competitor analysis to find out the existing strategies of the competitors and predict their possible actions.Then the ability of each competitor is analyzed to predict the effect of its competitive action.Thirdly,Porter’s five forces analysis model is used to analyze the competition status of DL as a domestic refinish coating market challenger,as well as the strategic problems of DL at present.Through the above analysis,it finally establishes the market challenger competition strategy suitable for DL company’s own development road,and formulates the feasible implementation strategy,which provides the guarantee for the implementation of its competitive strategy.Finally,it is hoped that this paper can provide meaningful practical guidance for DL company and other local refinish coating enterprises in China.