Research On Competitive Strategy Of Softto Co.

With the change of China's sustained economic growth and people's consumption concept, the daily cosmetic demand is gradually increasing. Due to the improvement of our local daily level of product technology, foreign brands' tariff barriers on products and people's love of the motherland, our local daily chemicals getting a competitive advantage. our local daily chemicals are getting a competitive advantage. Our local daily cosmetic enterprises have gradually become popular specifically functional products. But as both first functional brand and local brand, SOFTTO CO. has been losing money in recent years because of unsuitable strategy. This paper researches SOFTTO CO.'s present strategy to help it choose a better solution.To municipal research, we analyze the internal and external environment in SOFTTO CO. We use PEST analysis to analyze macro environment, using the theory of industry Life Cycle and fifth industrial competitiveness to analyze industry environment. Then analyze it's competitors. Sum up the company's opportunities and threats. Then analyze enterprise resources, capabilities and core competencies. Sum up the company's Strengths and Weaknesses. On the basis of these analysis, we use SWOT analysis and make strategy, Concluded: functional cosmetic products are both opportunities and strengths. SOFTTO CO. should choose development strategy and intensive strategy. Anti-Hair loss products should be chosen a market penetration strategy. Slimming products and whitening products should choose a product development strategy. For competitive strategy, whitening products should be chosen focused cost leadership strategy. Anti-Hair loss products should be chosen focused differentiation strategy. Slimming products should be chosen differentiation strategy. After that, it researches how to choose marketing strategy, production operations strategy, research and development strategy, human resources strategy and financial strategy. Finally, it makes a summary and looks into the future.