ILC Lube Company

With the rapid development of China’s automobile industry, the domestic automotive lubricants market was a strong development, it has become the world’s second largest after the US market. With an increasing demand for lubricating oil, lubricating oil is moving towards the use of grade leaps and bounds, especially in high-end cars and has direct integration with intense competition stage in the international oil market. Automotive lubricants market is an important part of the development of the automotive industry indispensable, and after China in recent years, it become a hot area of great concern in the automobile market.This article consists of case and analysis.Description of case is in the case analysis part. It is illustrates that ILC is an enterprise which are professional at manufacturing the OEM / ODM vehicle lubricants. Having a long-term cooperation with automobile manufacturers could help us to accumulate the certain technical advantages. Nowadays, the domestic automobile market shows a good development trend. In contrast, the market share of Japanese vehicles have been reduced in 2012 because of Diaoyu Island issues, while the business of ILC Lube Company were also influenced as well. The company make a decision to shift the focus to western clients; in order to avoid the risk of excessive reliance of Japanese customers. For the past three years, the proportion of European and American sales has been A small amount of growth,but the overall sales growth situation is not ideal.Through the external analysis in the case analyzing part, it is unexpected that the business direction of ILC is not clear. ILC realize that domestic enterprise must be principle not only from market share and growth rate data but also from the view of national policies. Basing on the positive trends in outside and technological advantages of the ILC, using the method of SWOT, consistent growth should to be the main strategy of the ILC. Through the theory analysis of competitive strategy, ILC should choose the differentiation strategy in the coming years as the main competitive strategy, the total cost leadership strategy as auxiliary competitive strategy. At the same time this paper for the ILC made the appropriate strategic implementation safeguard measures.To sum up, this article estimates that companies should seek the external chances before selecting competitive strategies. Furthermore, combining the advantages of the enterprise is able to propose a brief and specialized strategy.