The Study On Competitive Strategy Of Oxygen Company Of WISGCO

Industrial gases were known as the"blood"of the industry. In recent years, as China's rapid economic growth and industrialization, the industrial gas products market demand continued to grow. As the most important industrial gas species, oxygen product demand grows particularly significant. Transnational corporations, private enterprises have entered the high return sectors, Because of constant capital pouring into this trade; the market competition is getting fiercer.Oxygen Company of Wuhan Iron and Steel Group CO.LTD oxygen limited liability Company (hereinafter referred to as Oxygen Company of WISGCO) is the second largest industrial gas production base, and the biggest oxygen product base. Oxygen Company of WISGCO once has strong influence to the national market, and has absolute dominance of the middle china gas market. Along with the more and more air separation equipment put into use, our market position seriously challenged.Oxygen is a very important species for Oxygen Company of WISGCO, the sales revenue accounted for approximately 50% of total sales revenue. Oxygen becomes the focus of market competition; therefore this paper will serve as a research subject.This article first introduced the background and the significance of the research subject, and reviewed the developing process and the main school of strategic management theory. Next introduced the characteristic of oxygen, and then analyze the external environment which the Oxygen Company of WISGCO located. Afterwards introduced the Oxygen Company of WISGCO 's survey, and has carried on exterior competition environment analysis using the Michael Porter's Five Forces Model, has analyzed the competitor, latent entering, the substitute, the supplier, buyer how to influence the market competition. And pointed out that, Threatens to Oxygen Company of WISGCO mainly comes from the following aspect: 1) the PSA technology has the huge impact to the market for its low cost; 2) the chemical enterprise's unnecessary liquid oxygen enters the market, Will reduce the market price. And based on five forces models analysis, Chose the total cost leadship strategy to be supposed to the measure. Then has analyzed own strength, the weakness and the opportunity and the threat from environment using the SWOT analysis method. And pointed out that, As a result of the Chinese economy and the region economy high speed development, the market opportunity which the environment brings is higher than the threat by far which the environment brings, in view of the fact the characteristic of oxygen market, Oxygen Company of WISGCO should take the growth strategy, at the same time needed to give dual attention to the reverse strategy to eliminate Oxygen Company of WISGCO own inferiority.Finally, based on the analysis above, I proposed the Oxygen Company of WISGCO must adopt competition strategy: Total cost leadship strategy and growth strategy. And formulated the strategic implementation plan, as well pointed out the determining factor while the strategy implementing.