Cost Leadership Strategy Selection And Implementation Of The BNBM Group Guangan Company

With the improvements of people’s living standards,their awareness of environment protection has been strengthened in China.In 2017,President Xi Jinping put forward in the report of the 19th National Congress of the Communist Party of China that: to stick to the harmonious co-existence between human and nature,the basic state policy of resource conservation and environment protection should be established and practiced.Gypsum plaster boards,which are mainly made from the industrial by-product called flue gas desulfurization gypsum,can not only save the gypsum resources in its production processes,but can also preserve the clay resources by substituting solid bricks and can dispose the industrial wastes.Thus,the production of gypsum plaster boards is a kind of classical representative of circular economy and accords with the national industry guidance.Gypsum board industry in China is currently experiencing a rapid development period.After the years of rapid developments in real estate industry,decoration and redecoration demands in China are enormous.In the meantime,the urbanization construction and the wall reform system that are vigorously promoted nationwide also provide extensive room for progression for gypsum plaster boards in China.Beijing New Building Materials Public Limited Company(BNBM)persists in the brand concept of “Future of Green Building” and has been providing green environmental productions as well as decoration scheme for various kind of buildings.It has now become the largest gypsum board industry group worldwide.The Guang’an branch of Beijing New Building Materials Company was founded in 1997.With the help of the head company of BNBM and the local government,Guang’an branch company has been achieved leaping growth after years of development and has now occupied the leading status in the high level gypsum board markets in Southwest China.However,the building material industry is a kind of fully competitive industry.Especially in the Southwest markets,there are not only fierce completions among local competitors,the powers of those potential outcoming competitors are also vigorous.Thus,it is urgent for Guang’an branch to explore how to keep its advantages in the fierce competitions.This thesis applies Michael Porter’s Five Forces model and SWOT model to analyze the competitive situation for Guang’an branch of the BNBM,and basing on the strategic management and lean production theory,the cost leadership strategy for Guang’an branch company is selected while it is realized with the approach of lean production.By taking the measures of flexible production,repeated benchmarking,technological innovation,operation standardization,timely inspection,5S management,QC groups,as well as downsizing staffs and improving efficiency,the wastes are eliminated and the costs are reduced.In the meantime,to meet the demands of the market,Guang’an branch company explores the new markets by digging the deep and potential needs of customers and develops innovated new products and new platforms for customers to use to realize the purpose of overall cost leadership.By analyzing and studying the competitive strategies of Guang’an branch company,this thesis hope to provide ideas for similar companies of the new building material industry in the strategy selections as well as strategy implementations.