IMERYS Company Development Strategy Research

In 2019,with the downward trend of the world economy intensifying and China's GDP growth slowing down,Chinese automobile industry as China' s mainstay industry is also facing sales reduction and competition increasing.With the decline of consumption,major OEMs began to start price promotions to grab end consumers,and vehicle profits fell sharply.In order to maintain original profits,OEMS focus on cost control and transfer the cost pressure to T1 supplier by constantly demanding lower prices from downstream suppliers.In addition,the political situation is turbulent,conflict that caused by resources contention becomes more intensive;crude oil-rich areas like Middle East conflicts frequently and several countries' oil output recued sharply since the political impact;the prices of crude oil and crude oil derivatives remain high.At the same time,as the country focus on sustainable and green development,and perfects legislation and strictly enforces environmental protection regulations,many domestic large chemical parks have been shut down due to environmental issuesImerys' upstream raw materials have supply risks frequently,and the imbalance in market supply that caused by government regulation has pushed up Imerys' raw material prices furtherly.With the impact of internal and external factors,Imerys' problems are becoming increasingly prominent.Upstream raw material supply problems has led to the supply risks and costs increasing,which have severely affected the company's profits.Automotive manufacturers' price reduction pressure and relative measures have declined company's sales as well as profit margins.Company's high turnover seriously affected the team stability,new business development as well as company's cohesion.All these problems reflect Imerys weak influence on upstream suppliers,resource shortage for new markets&new projects and indifferent to human resources.After deep analysis of IMERYS,the advantages mainly are:brand advantages,technology advantages,process advantages,group scale advantages,and product&quality advantages.The main disadvantages of Imerys are:high turnover that caused by imperfect human resources system,instability of the team and inadequate resources allocation of new business and new project resources due to unreasonable marketing mechanisms.Based on the analysis of Imerys' internal and external environment and existing situation,Imerys should seize market opportunities as well as exploit its advantages to take a differentiated route and considering low cost.Imerys shall keep on increasing new products and technologies investment,develop differentiated products based on advanced technical forces;explore new markets,fully meet customers' differential needs and offer stable quality and services,to fully obtain market competitive advantages.Secondly,Imerys also needs to take advantage of group scale to increase its influence on suppliers and continuously reduce costs and risks.At lasty Imerys should also improve the human resources system and try to let employees to remain with company and offer education chance to supplier.Imerys shall promote informatization construction,define customers needs accurately to support the differentiation strategy;Increase financial support for all development measures to ensure sufficient resources.Through the above measures,it is possible to ensure the smooth implementation of Imerys' strategy of differentiated and low cost...