Flour Producers Competitive Positioning Strategy Based On Niche Analysis

The past decade has witnessed the most rapid economic development in China,and has also witnessed the boom of the flour industry. On one hand, the consumermarket is more mature, showing diversity and differences in the demand trend. On theother hand, economic development promotes industrial upgrading. The equipments,products, services and other original advantages of the enterprises are graduallydisappearing, the gap between enterprises is becoming small, and producthomogeneity is more severe. In such a competitive incentive period, how companiesdesign their products? How to find their target groups in the large market? What sortof competitive strategies should be made in order to ensure the sustainabledevelopment of the enterprise? These are long-term subjects that the flour industrypractitioners have to explore.This article is the analysis of the above-mentioned issues. The paper firstintroduces the development of China’s flour industry, describes the status of the flourindustry market; then elaborates the Niche theory and competitive positioning theoryintroduced in this study; through the flour industry chain and value chain analysis,pointing out the key parts, which can bring value-added to the enterprise. This paperalso makes a statement on consumers’ concern about the flour safety regulation andmanagement during the production process. Using PEST analysis and Five-Forcemodel, this paper interprets the overall environment and the competitive environmentof the flour market, analyses the supply and demand situation in recent decades,which can provide a basis for strategy-making. Through the Niche and positioninganalysis of the flour enterprises, this paper designs competitive strategy for them. Inthe last part of this paper, it takes DM Company as an example. Through BCG,SWOT analysis of the company, the paper gives the competitive positioning strategy.Innovative research results of this paper are as follows:1. A detailed analysis of the Flour industry chain and value chain clarifies the current development status of the industry, analyzing supply, demand and externalenvironment of the flour market, providing reference for enterprises on theirstrategy-making;2. A unique introduction of the Niche theory and positioning theory is made intothe strategy formulation of the flour industry, which is facing severe homogenizationof the products. The use of the two theories is designed to enhance thecompetitiveness of flour enterprises.This paper is with new and unique perspective and common research content, soit is believed that it will provide a reference for the flour enterprises on theircompetitive strategy formulation.