The Research On Competitive Strategy For QL Company

QL Company is a large-scale mainstay enterprise in textile printing and dyeing industry of china. In recent years,with the increasingly downturn of the international economy as well as the increasing strength of domestic" transfer mode, adjusting structure", the speed-up of textile industry postpones obviously, Cost pressures have intensified in an increasingly competitive market. Making and implementing the correct competition strategy by comprehensive analysis of the enterprise’s own resources and their environment becomes a significant and urgent task of QL company.Leading by the theories of competing strategy, this paper used the SWOT matrix to establish the foundation for making competing strategy of QL company’s textile business. The external opportunities that QL company’s textile business enjoys are: the national industrial policy support,steady growth of socio-economic.the overall level of consumption improving,mature technology and reserve enough, sustainable growth of the total market demand, fixed asset investment decelerated,technical textiles market demand imbalance,buyer’s bargaining power disproportion, slower industry output growth,etc. On the other hand, the company is in face of several threats such as, drop in Industry overall sales, slowdown in exports, Overall profit decline,strong bargaining power of the supplier, fierce internal competition, greater threat of new entrants.QL company’s internal strengths are:outstanding management team,a competitive workforce,relatively low transport costs,advanced manufacturing technology,greater market competitive strength in east China and north China.Meanwhile, the disadvantages of AB company mainly lie in the following aspects, lack of sufficient funds and relatively weak market competitive strength in south China, and so on. Through comparative analysis, this thesis concludes that the overall cost leadership strategy is the best choice for QL company to be able to gain super profits in the competition.For the overall cost leadership strategy to implement effectively,QL company should focus on the following areas:establishes the core value to enhance corporate culture,improve capital structure to make good use of financial leverage,optimize the human resource allocation to increase the group’s energy,optimize material purchasing flow to decrease the cost of purchase,implement the fine production to decrease the cost of production,carry out integrated marketing to decrease the cost of sales.Meanwhile,the company should establish strict control systems to ensure implementation of the strategy.