The Research Of Competitive Strategy For X Company’s Para-aramid Business

Nitrate fibers(NC)was born in France in 1891,as the earliest chemical synthetic fibers,regarded as the new age of the textile industry.With the development of the science and technology,more and more chemical synthetic fibers with different characters have appeared;and within the present decades,this traditional textile industry has already leaped forward into the manufacturing industry,which has made a great impact in the world.It is the so-called 20 th century’s revolution of the material sector.Nowadays,the development of the chemical synthetic fibers has already become the essential factor of the embodiment of a nation’s comprehensive power.The output of our country’s chemical synthetic fibers is about 5000 tons a year,more than 70% of the world capacity of production,which is stably No.1 in the world.However,the conventional chemical synthetic fibers are now in a completely competitive market.The products are highly similar in property,but the products’ additional value is low.What is more,the trade war between China and the USA in 2019 has made the conventional chemical synthetic fibers enterprises in a more and more difficult situation.On the other hand,the technology content and innovation ability of our country is relatively lower than the western developed countries,and quite a lot of chemical synthetic fibers for special uses must be imported from abroad in our country.It is the critical problem presently that how to upgrade the chemical-synthetic-fiber industry of China,and meanwhile,establish a higher market.Building a strong country in science and technology is the foundation of China’s rejuvenation.The development of chemical-synthetic-fiber industry is interrelated with other industries,which marks the powerful country in science and technology.Since 20 th century,the application of chemical synthetic fibers has expanded from the traditional textile application(e.g.garment,home textiles,cases and bags,ornaments)to the industrial application,and has greatly promoted the development and innovation of the global industry.Among them,it has made especially prominent contribution to the three high-performance chemical synthetic fibers,which are para-aramid fiber,carbon fiber and ultra-high-molecular-weight-polyethylene fiber(hereinafter referred to as high-performance fibers).Among the three high-performance fibers,para-aramid fiber has the highest technical threshold,the widest applications and the biggest market scarcity.It has become a necessary strategic material in the world.Compared with western developed countries,our country’s development of para-arammid fiber industry is relatively backward in the world.Whether it is product performance,quality,productivity or cost,nothing can completely match the standard of the mature suppliers abroad.However during the past ten years,domestic para-aramid production has begun to catch up.As the leader of the domestic para-aramid manufacturers,X-Company is sure to be the first para-aramid mill in China,who will realize 4500-ton production capacity in 2020,and stride towards the fourth para-aramid supplier in the world.The research purpose of this paper is to make decisions on competitive strategy of the X-company’s para-aramid business after their para-aramid capacity increasing to 4500 tons,and to make the X-company’s para-aramid business become more and more competitive,to have much larger shares in the market,to establish stable position in the market,to increase profitability,to achieve sustainable development,and to become a mature,reliable as well as influential para-aramid supplier in the end.The research method of this paper is mainly based on the theoretical research of the competitive strategy.The research is about the external environment of para-aramid business of X-Company,and also a comprehensive analysis of X-company’s internal investigation,and then through strategic analysis and case analysis to draw the conclusion that X-company should adopt a proper competitive strategy for para-aramid business.This paper introduces the basic product knowledge of para-aramid fiber,and the paper comprehensively and systematically analyses the development status,market environment and future trend of para-aramid industry in China.In terms of the 4500-ton para-aramid production capacity to be achieved by X-Company,this paper studies the competitive strategy for X-Company with the analysis of its internal and external environments,as well as SWOT model and KSF model.Eventually,the conclusion adopting cost-focused leadership strategy is drawn together with the implementation measures and supporting measures,and it points out that X-company the para-aramid business needs to focus on giving full play on it’s own advantage,and the application market with more opportunities,and to focus on the target application market with the resources of production capacity,capital,and manpower,etc,in order to make the market bigger and more stable.On the other hand,the company must control the cost so as to resist the threat of the market price competition by gaining the cost advantage.In this way,X-company’s para-aramid business can be stable,sustainable and beneficial,and eventually it can achieve the goal of becoming the fourth mature counterpart para-aramid supplier in the world,which can fully drive the development of domestic para-aramid fiber,and let our country stride toward a powerful chemical-synthetic-fiber country.My hope is to help X-company’s para-araimid business achieve success,and provide some references and suggestions for the localization of para-aramid in China.