The Research On Competitive Strategy Of DIC Company Based On QSPM Matrix

Abstract:At present, firms on package printing enter into stage of low level of profit, for subsistence in cruel competition, they constantly reduce price for ink factories. Because entering threshold is not high, there have been more than300companies, and product characteristic is similar, price competition between manufacturers is increasingly fierce. Taiyuan DIC Ink is a company which deals mainly in producing package printing ink, for the price competition of firms supplying raw materials, printing enterprises and rivals, its’profit and share of market brings down on and on. This has threaten its existence and development. How to break away from this dilemma becomes a problem which it has to deal with.This paper analyzes internal and external environment of DIC Ink, researches itself problems、chances and challenges, develops the cost-leading strategy for it, reshapes operation concept and value chain. Firstly, develop operational ability, lower operating cost, hat including exploit Blue Sea products, management more finely, comprehensive management of quality; secondly, innovate technology and upgrade equipment, reduce cost of production; thirdly, build VMI sales model, reduce sale cost; fourthly develop technology service for customer, reduce service cost, specific performance: organize customer to learn professional knowledge; build system to train technicians for them.This paper further puts forward safeguard measures for DIC implementing competition strategy. Firstly build again purchasing organization in favor of low cost; secondly, mine profit sources by utilizing ABC analysis; thirdly, adopt management model that lowers manpower cost, standardize cost to control budget; optimize performance management and compensation mechanism, ensuring consistency between post and talent develop recruitment quality, lower demission costs; fourthly, further utilize information to lower administration cost. Improve the level of utilizing information; strengthen business intelligence and system that supports decision making, pay attention to talent training and supply safeguard measures.New competition strategy will deal with challenge in new vision and idea, Improve the profit ability and competitiveness, guide firm in road for long-term development.