Overall Cost Leadership Strategy For Hunan Valin South Environmental Technology Co.Ltd.

Along with the continued progress and development of human civilization, the environment in which mankind survive is deteriorating. Harmony and sustainable development of both Human and the natural have become the only way out. Because of this, the environmental protection industry will become the most promising products, and has entered the stage of rapid development already.The rapid development of Chinese economic makes a huge space for Chinese environmental protection industry to develop. But in China, there is many difficulties such as high barriers to market entry, backward technology, and high operating costs and so on. Therefore, the advanced technology and low cost advantages become the keys that environmental enterprise wins in the competition.Hunan South Hualing Environmental Technology Co. Ltd, which is founded at the end of 2002 with the main business of metallurgical slag handling and Gas power, is an environmental enterprise of comprehensive utilization. It has become a matter of urgency that how to formulate the right development strategies which enable the company to rapidly expand, keep the invincible position in the area of environmental protection.In this paper, on the basis of the analysis of the combat readiness environment of the South Hualing, the strategic thinking of leading proposed total cost was made which been hoped to provide useful reference for the South Hualing strategic decision. First, the strategic environment of Hualing South were analyzed. On the basis of the analysis of macro environment, related industries environment and internal environment, the method of SWOT analysis was used to summed up the advantages and disadvantages of Hualing South and the opportunities and challenges that Hualing faced.Secondly, according to the strategic environment, the operating strategy of Hualing South was determined as the total cost leadership strategy which makes the corporate mission and strategic objectives of Hualing South as the guidelines, and then its implementation means was determined too. The approaches include:To control the value chain cost drivers as a primary means to ensure the low-cost advantage of company;Ensure that the low-cost strategies orientation of the company is maintained through the investment controlling;Maximize the value of the company through the control of financing costs. In the implementation of the low-cost leading strategy, great attention should been paid to guard traps in the progress when the strategy is implemented, according to company's specific circumstances, corresponding responses were made in view of the following dilemma:First, Contradictions between the mass production and product diversification was analyzed, the corresponding countermeasures was made.Second, Contradictions between the new low-cost technology and research and development into and the countermeasuresThird one is the plight of low-cost and high-quality and the solutionsFourth, constraints of the limited supply of advantage raw materials for the expansion of scale and countermeasures.