A Research On Competitive Strategic Optimization For DQG Company's Liquefied Petroleum Gas In Yunnan Civil Liquefied Petroleum Gas Market

In Yunnan civil gas market, the main products are coal gas and liquefied petroleum gas (hereafter named as LPG). Comparing the eastern and coastal developed cities, LPG business grew late in Yunnan Province. In 1990s, LPG was introduced into Yunnan market by private enterprises. Sooner after, SINOPEC DQG came in and quickly gained high market share in wholesale market by SOE business model with advantages integrating production, supply and sales at low cost.2000-2006, LPG was widely promoted in level one and level two cities in Yunnan and market demand grew quickly. LPG market entered growth stage. At this stage, the new comers, BJ Company and ZM Company entered into Yunnan gas market. The market competition changed from pure price competition to brand competition and differentiation competition and DQG's competitive strategy focused on advantages of quantitative business and branding. Since 2007, LPG in Yunnan market has gradually been going mature and growth rate slowing down. Competition in this time is becoming severe while new entry of KL Company, promotion of alternative sources of dimethyl ether and the upcoming production of 10 million refinery and natural gas project by China Petroleum, which brings new challenges and requirements to DQG. Consequently, how to optimize and improve existing competitive strategies to adapt to market development has become an urgent problem.Based on this situation, the paper's research purposes is to optimize competitive strategy for DQG. First, by building DQG's competitive environmental analysis IE matrix, understand what opportunities and threatens DQG is facing, what advantages and disadvantages DQG has, and identify the company's position in the industry at this stage; Secondly, analyze the DQG's current competitive strategy and find out problem to be solved. According to analysis, workout optimized solution for competitive strategy. Thirdly, evaluate the solutions by setting up a comprehensive score sheet for competitive brands in the market and recommend the security conditions for implement of new solutions.Since the research objective and contents have common applicability in Yunnan LPG market, I hope that the outcome of the paper could be a valuable reference for related competitive strategy research.