Research On The Competitive Strategy Of Mineral Business Of SGS-CSTC Company

Since reform and opening in China,it gradually released the market entry barriers for foreign-owned companies,which attracted a large number of foreign-owned companies to enter into China market.Meanwhile,the rapid development of the market economy,technology,and improvement of living standards,people have higher criteria on product quality and safety,and they pay more attention on health,which undoubtedly pushes the sharp development of third-party inspection and certification institutions.Whereas,the inspection industry varies on technical capabilities,service,brand recognition and market credibility,etc.,leading to price war and fierce market competition.As a leader in the industry,SGS-CSTC is also encountering the bottleneck of low market shares in domestic and slow revenue growth in mineral business.Therefore,it is crucial to redeploy the strategy to adopt the pace of change and tough market competition.The paper will take the competitive strategy of SGS-CSTC Mineral business as an example.It comprehensively analyzes the external environment from macro environment,market environment,and industry environment,which comes out to be a profitable industry in the further.However,the rapid growth of local companies has posed great threat to the expansion of SGS-CSTC mineral business.It also summarizes its own advantages and disadvantages from internal environment analysis through resource analysis,capability analysis and core competitiveness analysis.Based on the internal & external research,and SWOT matrix,it finalizes the target market,strategic goal,strategic commitments and chooses the differentiated competitive strategy to cope with fierce market competition,also positioning the key customers on large and medium-sized concentrates and bulk energy suppliers or traders,focus on developing the business in Pearl River Delta and the triangle area,and to explore the western China market gradually.Counting on national industrial support policies and group brand reputation,R & D capabilities and national market layout,SGS-CSTC mineral business has to develop innovative projects by customer-orientated to build differentiated competitive advantages,enriching professional staffs,high-quality service,innovative projects,great brand image,integrating corporate resources,expanding marketing channels and digital management systems.Finally,it delivers guarantee mechanism to ensure the implementation of the strategy through human resources,technology,organization restructuring and team culture building.As one of the well-known third-party inspection and certification institutions in China,it is of great significance to research on SGS-CSTC's competition strategy,particularly important to the developing companies in the same industry in China.