The Research On Competitive Strategy Of SPCompany

As the leading brand in the paper industry,SP company is one of the hundred best business,the largest high-grade coated paper board production enterprise in China and the world’s most advanced non-coated fine paper production base.With the changes in domestic and international environments,SP company is facing serious challenges. Especially from the original pursuer,replicators turning to the industry leader, SP company needs to adapt to new market changes and implement competitive strategy for themselves. The purpose of this research is to discuss as the paper industry leader, SP company should take which competitive strategy, in order to adapt to the current market environment and establish competitive advantage to obtain long-term development through the analysis of the external environment and internal conditions of SP company.External opportunities of SP company are following:The Government give the paper companies a lot of preferential policies.And the implement of paper industrial policy provides guidance and strong support for the development of China’s paper.There is still much room for improvement of paper consumption in China, and the huge consumption growth potential will promote and facilitate the development of the domestic paper industry.Cooperation with the International Paper Company as well as the establishment and further expansion of international markets will help the company to expand sales and profit in the fierce market competition.M & A opportunities for SMEs will help the company to further expand the scale of the advantage.The main threats that the company is facing are invasion of international paper giant,the development of large domestic paper company,international trade barriers,unclear role of policy guidance and promote and the burden of investment in environmental protection which have brought a great challenge for the further development of SP company.Internal strengths of SP company are following:Our main products have dominant advantages in market. There are advanced science,technology and equipment, adequate water,electricity and energy, financial advantages, environmental management advantages, marketing network covering almost the whole country and vast international market.However,there are some disadvantages in SP company:the shortage of raw material,high risk of expansion projects,the lack of forward-looking in human resources management.Especially there is a big waste in the value chain links of the cost of manufacturing, procurement, logistics, sales and others.The paper concluded through analysis:SP Companies must adopt cost leadership competitive strategyto be able to reap excessive profits in the competition. SP company should pay attention to the following aspects to implement leadership competitive strategy:through establishing procurement strategic alliance to reduce cost of procurement;through expanding the scale,transforming technology and implementing precise production to reduce cost of production;through outsourcing logistics business to reduce cost of logistics transport;through building e-commerce platform and optimizing sales channels to reduce cost of seals.Meanwhile,SP company should guarantee the effective implementation of the strategy from the following aspects:improving the soft environment to strengthen corporate culture;improving the organizational structure to ensure implementation of the strategy;reforming human resources to improve human resource management system;doing well supply of funds to support the implementation of the strategy.