The Competition Strategy Study Of H Company About Chlorine Dioxide Generator

The H Company is the largest domestic manufacturer in chlorine dioxide generator industry. Through decades of dramatic development, it market share of low-end chlorine dioxide generator has ranked at first place in China. With implementation of relevant national policies by Chinese government, the demand of high-end chlorine dioxide generator in the market has been dramatically increasing and thus a large number of foreign manufacturers gained their access to the market. It is an urgent need for the company to select appropriate competition strategy and eliminate technical barriers so as to access the high-end market with the current strength in med-and low-end market.The opportunities presented for the company are the following:Rapid development of national macro economy in China as a solid economic foundation for manufacture of products; High potential for increase in value of products with improvement of awareness of health, environmental and self-control; Breakthrough in basic technology as a solid foundation for retrofit of products. The company is facing the following challenges:More manufacturers accessing to mid- and low-end market; Access of a large number of foreign manufacturers to the high-end market; Improvement of the purchaser's ability to bargin; Increase of strength of major competitors. The company has the following advantages:Good financial indexes; Good brand reputation and high marketing ability; The cultural background of Shandong University and talented staff; Core technology of small- and mid-sized equipment. It has the following disadvantages:A huge gap between its core technology and that of foreign companies; R&D ability in an urgent need for improvement; Defects in human resources management; Corporate culture excessively focusing on sales and marketing. As revealed by value chain analysis, the huge gap between the company's high technology products and those of foreign manufacturers has become the bottleneck limiting its development potential. Resolution to technical issues requires huge investment in R&D so that low-cost strategy no longer applies. Focus strategy no longer applies due to small gap between market shares in different markets. With the broad prospect of high-end market and huge technology gap between the company and foreign companies, it will have to adopt differentiation strategy as its competition strategy. The following provisions are made in the company for the purpose of effective implementation of the strategy:Addition of R&D facilities are added, establishment of human resource department and integration of existing functional departments to optimize organization structure; Cultivation of an innovative corporate culture to refine construction of corporate culture; Establishment of human resource development planning, refining of recruitment system, recruitment of innovative talents as well as establishment of a training system based on competence and an effective incentive mechanism to optimize human resource management. In addition, specific provisions are made for the purpose of implementation of the strategy, such as facilitation of innovation ability development, improvement of marketing ability, financial management and brand construction and establishment of a control system.The study presented in this paper is helpful for H Company to identify the route for its strategy development and improve core competitiveness, thus achieving its business goals. Also it can be used by other domestic chlorine dioxide generator manufactures as a general reference for business operation and selection of competition strategy.