Strategic Studies For SQ Company Competitions

Foods are the necessities of people’s life. Along with the steady growth of China’s economy and the improvement of the people’s living standards, people’s requirements for foods’quality are increasingly stringent. That is, from the initial satiety to now focus on health and health care functions. The rise of China’s health food industry is rather late in the health food industry. However, health food industry is a desirable industry. It has a huge market attracts potential and can draw many enterprises to enter. SQ company is a company with Guangxi enterprises characteristics which engaged in tortoise herb jelly production and sales. It has a significant influence in the tortoise herb jelly market as it stick to its enterprise spirits of " integrity, professionalism, innovation and efficiency". However, with more and more competitors enter this market, SQ company is facing a challenge. How can it survive and be the champion in the fierce market? These force SQ company to make a feasible competitive strategy concerning its internal resources and external environment, and give play to its core competitiveness to expand its market share.This paper will set SQ Company as an example. It firstly introduced its general situation and product feature. And then make a detailed analysis of the company’s internal resources and ability, summed up the company’s core competencies, so as to certain the company’s internal advantages and disadvantages. Then using PEST analysis method to analyze the four macroscopic dimensionalities of political and legal environment, economic environment, social environment, science and technology environment to identify opportunities and threats SQ Company facing. Besides, this paper will apply Michael Porter’s Five Forces Model to analyze the industry environment. It mainly includes potential market entrants, existing competitors, alternative products, the bargaining power of the buyer and the bargaining power of the seller. With the final this paper will apply SWOT analysis to certain the advantages, disadvantages, opportunities and threats of SQ Company. And by combining with the company’s market positioning and its target market selection, this paper will summarize the strategy choice at different strategic situations. And thus determined the differentiation strategy of the company’s choices. On the base of that, this paper will assured the applying of differentiation strategy from six aspects. They are product, brand, corporate culture, organizational structure & personnel, marketing and the core competitiveness of the company. At last, this paper will access and adjust the company’s competitive strategy.SQ Company implements differentiation strategy with strong practicality and feasibility. And this plays a great role in promoting tortoise herb jelly market into a leader position. And it continuously creating profit and achieve the business objective. And it will take example by other similar enterprises.