A Research On The Business Strategy Of The Unite Lube Oil Company Of Petro-China

Unite Lube Oil Company of Petro-China was founded in 1993. Since the company has a short history, and has no market competitive strategy for rubber oil, the market share of the rubber oil decreased. This paper tries to take advantages of itself and catch market opportunities and avoid risks with the help of the research on the competitive strategy.Based upon a thorough investigation of national rubber oil market, the author adopts the theory of market segmentation and target market option, and decides that Unite Lube Oil Company should involve in the competitive target market. The author uses Porter's Five-forces Model and analyzes and studies the structure of target market and the major competitors. Then the author adopts SWOT analysis method to specify the advantages and disadvantages of Unite Lube Oil Company as well as the opportunities and threats. Finally, a generalized competitive strategy is adopted to determine the market competitive strategy of Unite Lube Oil Company for rubber oil.By way of integrating the relative theories of marketing strategy and the present market situation of rubber oil and Unite Lube Oil Company, it is concluded that naphthene type rubber oil shall take part in the middle-grade rubber oil target market competition while the aromatic type rubber oil shall take part in the low-grade rubber oil target market competition. The reason is that the former has the advantage of advanced total cost and the later has a variety of products. Based upon that the target of Unite Lube Oil Company is set, which is to guarantee advanced total cost and products in different categories.With the globalization worldwide, national petroleum and petrochemical enterprises are facing more complicated competitive environment and much stronger competitors. However, most of these enterprises were protected by national policies historically, and are relatively weak in reacting to the market,in addition to lack of effective competitive strategies. This research not only solves the determination of competitive strategy for Unite Lube Oil Company, but also can be used in national petroleum and petrochemical enterprises in their involvement in the international and national market competition.