The Research On Competitive Strategy Of Marine Cable Of Prysmian China

In recent years, with the global economic recovery, the global shipping market experienced the downturn, hovering, rapid momentum of recovery. The current shipping capacity of merchant ship is unable to meet market demand. There is a clear need for new vessels. What's more, the rising Freight Index makes ship owners feel more confident of investment in the new shipbuilding. As the world's third largest shipbuilding country, China entered the golden season of the shipbuilding. Undoubtedly, the rapid development of China's shipbuilding industry provides a good opportunity for the development of marine cable manufacturing industry. Many foreign marine cable manufactures have begun to enter into the Chinese market.However, from the international development trend in the cable market, we can found that the problem of surplus productivity forces is universal. Supply exceeds demand, and the price is decreasing. Coupled with the price of the copper, aluminum, plastics, and other major raw materials rising sharply, the competition among enterprises become more intense. Many cable enterprises are in trouble. In the process of localization, some foreign marine cable manufacturers have also encountered numerous obstacles.Prysmian is the world's largest energy and communication cables manufacturer in the world five continents with 54 manufacturers covering 21 countries, the global market share of over 10 percent. With the cable business expansion in China, Prysmian Group regarded Prysmian Tianjin plant as marine cable production base in the future, and decided to introduce production lines. At that time, its major competitors such as Nexans, Helkama, Yangyuan, and so on, have a very high market share. The management of Prysmian China has to take the corresponding competitive strategy so as to catch up with rivals.The author takes Prysmian Tianjin as the subject of the research. At first, the author will give a brief introduction of Prysmian Group. Then the author proceeds to an analytical framework, such as PEST analysis and Porter's Five Force Model, to understand internal and external environment. Step by step, the author conducts analysis and researches on mission, strategic objective, its adopted competitive strategy, that is, differentiate strategy with localization, and raises the discussion on the key factors in the strategy implementation, analyzes the effectiveness, and makes suggestions of channel management, internal management, etc. Finally, the author draws a conclusion.This paper focuses on the competitive strategy analysis. To be honest, it is not easy to give a full and deep discussion covering all the factors and issues in the strategy management. Meanwhile, this paper mainly emphasizes on the frame of competitive strategy and the development of its business plans as the process of localization is still at the initial stage. The aim of this paper is that the production of the research would bring new thinking to management of Prysmian Tianjin, as well as the other colleagues who are interested in this subject.