Research On Competitive Strategy Of Company A’s Battery Material Business Unit

According to incomplete statistics,total market of electrolytes is 12-13 million tons in 2016,the domestic market is about 100 thousand tons,the global marke t value is about 70 to 90 billion yen,and the growth each year is about 15 to 20%.The global lithium battery electrolyte market in short supply currently,but the stock lithium battery market growth rate is not high,so the future increase in the market mainly depend on power lithium battery market,especially in the field of electric vehicle demand.Based on the above background,a good macro environment and a bad competitive environment of battery material business of Company A is analyzed to use the PEST and Porter’s five-force model.And Company A still need to invest a lot to reduce costs and improve technology through the analyze of battery material business of Company A from 4 aspects of technical capacity,supply capacity,sales ability and product competition force even through the environment is relatively stable.On this basis,SWOT analysis is used to illustrate the advantages of company A’s battery material business(good reputation in the industry,professional technical support and service,i ndustry experience,product quality and stability),disadvantages(low market share,high production cost,lack of rational understanding of the relationship between marketing,lack of a reasonable and effective assessment system and incentive system),opportunities(high consumer awareness of green environmental,big support of industry associations,the development trend of the lithium battery and battery material market is good),threat(increased battery materials business,new product competition,the threat of low-cost products).Cost leadership strategy is fit for Company A’s battery materials business for through the strategic environment matching.Finally implement the strategy from 4 aspects: the adjustment of organizational structure,improve the control system,improve the compensation system,improve technical creation,and then safeguard measures are proposed from three aspects: enhance corporate culture construction,information construction and strengthen the staff training.