Reseach On Development Strategy Of SE Guangxi Company

Paper industry is fundamental industry closely related with people’s lives and national economy. China has become the biggest producer and consumer in paper and board, and this situation will continue, which makes the market of pulp & paper of China draw the whole world’s attention. SE Guang Xi Company is a subsidiary of SE which is an international pulp & paper group.The compay is located in Guangxi, it is planning to establish a large-scale pulp and paper mill near the coastal area of Guangxi, dedicating to opening up the Chinese packaging market.The paper is aim to formulate the development stategy of SE Guang Xi Company, bases on and focuses on using theoretical analytical tools of SWOT method, Value Chain Analytical Method, Vertical integration Strategy, etc. The paper firstly analyzes the internal resources and capability of SE Guang Xi Company; Macro environment was analyzed using the PEST method, industry environment was analyzed using Michael Porter’s Five Forces Model; Paper industry value chain was analyzed by suing the Porter Value Chain method to define the key success factors for industry; Lastly, SWOT strategically choice analysis was done. Besides, systemically analysis was also made on the competitors between corresponding Forestry companies, Pulp companies and Paper companies. General conclusion is that, there is fierce competition in national pulp and paper industry, as well as development space, large scale companies enjoys a more favorable advantage with adequate capital and strong technology; SE Guang Xi Company owns competitive advantage and investment feasibility in the packaging market. The analysis also shows that, because of the shortage of timber for pulp, raw material for paper in China is insufficient. Therefore, the company should adopt the general strategy of forestry and pulp&paper integrated. The company need to establish own fiber base in order to guarantee the supply of raw material and avoid relevant threats in the supply chains.In the end, the paper brings out some implementation measures for integrated strategy according to the needs of the company’s forestry, pulp and paper integrated strategy and in connection with problems and current strategically plan which were mentioned in both internal and external analysis of company. All these measures are based on SE Guang Xi Company’s current development status and raw material as key factor of industry, revolving around with integrate for forest, pulp and paper value chain and discussion on the way how to guarantee a low cost raw material, elaborating from the internal management and external measures.