The Research On Competition Strategy Of LuLuTong Plastic Co.,Ltd

With the deepening of China's reforming and opening-up and China's entry into WTO, Chinese plastic pipe industry is developing very rapidly and the turnover of the plastic pipe grows by an average annual rate of 15%. As a company that studies and develops, produces and sells plastic pipe products, LuLuTong Plastic Co. Ltd is facing a promising opportunity. At the same time, LuLuTong Plastic Co. Ltd lies in Hunan Province in which the plastic industry is undeveloped while the plastic pipe industry is in a rapid development. LuLuTong Plastic Co. Ltd not only faces the challenges from the enterprises of Guangdong, Zhejiang, Jiangsu Provinces in which plastic industry is rather developed, but also meets the competitions from the other plastic pipe enterprises in Hunan Province. Although at present LuLuTong Plastic Co.Ltd plays a leading role in the plastic pipeline industry at Hunan, it is still at a disadvantage on talents, technology, funds and scale compared to the domestic large scale enterprises. Now a urgent problem faced by the company is how to take the present opportunity effectively to enlarge the company's market share and to maintain the company's advantageous status in competitions.This thesis carries out the research by taking LuLuTong Plastic Co. Ltd as a breakthrough point. Firstly a brief introduction is given about LuLutong Plastic Co. Ltd. Next an analysis of its exterior environment including PEST analysis and profession competition environment analysis is made. Then, after analyzing the internal resources and capability that LuLuTong Plastic Co. Ltd has, the strengths, weaknesses, opportunities and threats of the company are found out. Based on the above analysis and according to the competition strategy theory, the characteristic of plastic pipe industry and the organizational goals and strategic goals of the company, the author suggests the differentiation competition strategy for LuLuTong Plastic Co. Ltd and emphasizes to carry out the differentiation competition strategy by making improvement on corporate governance, organizational structure, enterprise culture, human resources management, technical research and development and marketing and so on. By doing these, the company is supposed to gain the competitive advantage in the industry and finally achieve the company's sustainable development.During the process of research, this thesis adopts the relative strategic theory and the corresponding strategic analysis tools, analyzes and chooses the competition strategy for LuLuTong Plastic Co. Ltd by putting the theory into practice. The proposal made by the study is of operational feasibility for LuLuTong Plastic Co. Ltd and of a certain reference value to other plastic pipeline enterprises.