The Research Of Henkel Adhesive Competition Strategy

With China's economic growth slowing and GDP growth rate down to below 7%,the real economy is facing a major challenge.Once upon a time,multinational companies enjoyed super national treatment in China and ate the bonus of China's reform and opening policy.Their performance increased rapidly and have occupied most the market share.Meanwhile,Chinese local companies are also catching up through imitation,improvement and innovation.They gradually established a foothold,and began to erode the market share of multinational enterprises.The development of multinational enterprises in China has gradually entered a bottleneck,and it is necessary to adjust the strategy to adapt to the new market circumstance.Henkel is a leader in adhesive industry with the industry's most comprehensive technology and products.However,with the adhesive industry in the increasingly fierce competition,Henkel has faced big challenge to continue to maintain high growth.Henkel must adjust the strategy in time,gradually withdraw from the weak industry,enter the prosperous industry,adjust and optimize the internal resources to enhance competitive advantage.This paper uses PEST and Potter's "five forces" model to analyze the company's outside environment and finds the opportunities and threats.Then it analyzes the customer value proposition and Henkel's internal resource.The competitive strategy based on value creation and focusing on the market with the most potential is drawn into the conclusion.Finally,the advises of improving company's internal and external resources are also given.