Research On Competitive Strategy Of C5 Products In B Company

Chemical products are cornerstone of manufacturing industry.After decades of development,Chinese basic chemicals industry has made great progress,and is becoming more and more mature.Currently challenges faced by Chinese chemical enterprises are unprecedented: political and economic situation at home and abroad is complex and changeable;domestic policies about safety and environmental protection are becoming more and more strict;new capacity has been put into full operation;the Sino-US trade conflicts and the "reverse globalization" events have caused increasing uncertainties in the world economy;COVID-19 has become the "black swan" incident affecting the whole world and cast a shadow over the global petrochemical industry;in addition,the technological revolution characterized by intelligence,integration,miniaturization and low cost will greatly change the competition of the future oil market.As a good enterprise in the chemical industry,B company provides important raw materials for the development of national economy.Like other chemicals,C5 products of B company are also faced with complex environment and fierce competition.The original competitive advantage of this product can’t fully meet the current complex and changeable environment.B Company needs to re-examine the external environment and its own resources and capabilities,timely adjust the competitive strategy of C5 products according to market situation to cope with changes in the current internal and external business environment and reshape competitive advantage of the products.Basic theories and research status of competitive strategy were reviewed and regarded as basis for analysis in the thesis.The external environment of B company’s C5 products is analyzed comprehensively by PEST analysis model and Porter’s five forces competition model etc.Combined with analysis of EFE matrix,it is concluded that B company current opportunities are greater than threats.The internal resources and capabilities of B company’s C5 products was comprehensively analyzed using the theory of organizational resources,and by combining with IFE analysis matrix it is concluded that B company current disadvantages outweigh advantages.By analyzing the existing competitive strategy of B company’s C5 products,the strategic defects were found out and the alternative strategies were evaluated.Under current business environment,competitive strategy of B company’s C5 products based on differentiation strategy and assisted by cost leading strategy was determined by analyzing the existing competitive strategy of B company’s C5 products and evaluating alternative strategies.Then,according to the Balanced Scorecard theory,the implementation of competition strategy of B company’s C5 product was elaborated from four perspectives of finance,customer,internal process,learning and growth.The differentiation of safety and environmental protection,product quality and customer service,optimizing product innovation and operation process,improvement of the company’s system process should be implemented,and cost advantage of integration should be maintained.Finally,measures to ensure the implementation including establishing strategic central organization,building up strategic communication system,setting up competitive intelligence system,and using Balanced Scorecard for continuous review and update were discussed.The thesis has certain reference for selection of competitive strategy of chemical products under new market situation,especially for C5 products.Strategic management is a dynamic and cyclical process,and B company still needs to monitor and adjust regularly according to the changing market situation and actual situation of the company.