The SR Company Competition Strategy Research

Textile industry which is one of the important industries in China is developing rapidly in the international market with low costs and high competitiveness. However, textile industry has been confronted with great challenge in recent years because of the economic crisis in Europe and the United States. The problems such as excess production capacity, poor technology and inadequate core competitiveness have caused loss and bankruptcy of textile enterprises. The economic crisis makes the textile enterprises realize that they should change the mode of extensive development and improve the competition ability in order to keep a stable development in the changeful environment. And the only way for improving the competition ability of textile enterprises is to create a suitable competition strategy and carry out it firmly.SR is a leading domestic wool textile company and its main products are worsted wool fabrics, which are exported to more than 20 countries and regions such as the United States, Europe, Japan, Canada, Hong Kong and Macao. With sustained downturn of the international market, slow economic recovery in the United States, deeper debt crisis in Europe, poor Japanese economic growth and the continuing decline of the value of euro and yen, the demand for the main export market has been weak since 2012. And the decrease demand has a big effect on SR which is among the export-oriented companies. So it is important and necessary for SR to point out the future competition strategy which can guide the company to respond to the changes of external environment effectively according to its specific situation. Only in this way can SR improve its competitive ability, enhance the market share and create more values.In this paper, I put forward the competition strategy and safeguard measures for SR according to its specific situation by collecting a large number of data and using the theory of competitive strategies and tools. Firstly, I analyzed the internal and external environment of the company by using the internal factor evaluation (IFE) matrix and external factor evaluation matrix (EFE) to evaluate the internal environment factors and external environment factors respectively. Secondly, I used the SWOT model to evaluate the firm’s strengths, weaknesses, opportunities and threats and chose the quantitative strategic planning matrix (QSPM) according to the strategic position to regard the differentiation strategy as the competitive strategy of the company. Considering SR’s actual situation, this paper used the product and marketing differentiation as the major implementation of the differentiation strategy. Finally, I put forward the guarantee measures from the perspective of human resource, product, marketing and finance.The competition among wool textile industries is increasingly fierce because of the decrease of the technology gap and the improvement of the production efficiency. In this situation, the wool textile enterprises have to choose the competitive strategy to survive in the fierce competition. By analyzing the macro environment, the wool textile industry and SR, this paper concludes that the wool textile firms which have created the differentiation strategy and set up their own competitive advantages will win in the fierce competition by getting the profit beyond the average level. With the application of the internet technology and intelligent equipment among enterprises, network marketing becomes more and more important and intelligent factory plays a greater role in enterprises. Based on the differentiation strategy, this paper also put forward safeguard measures that textile production enterprises should also pay attention to the channel of network marketing and the construction of intelligent factory. These measures will not only help the implementation of the differentiation strategy, but also help enterprises layout in the future competition in advance and adapt to the technology progress as soon as possible.Because of the same external environment and the little difference among entrepreneurs, the wool spinning enterprises may come across the similar problems in the process of their development. So this paper will have the reference significance for those companies which have the similar circumstances with SR to develop their competitive strategies.