Research On The Competitive Strategy Of Carbon Black Business Of LK Company

Carbon black is a kind of chemical raw material widely used in the industrial production of rubber,plastic,ink and coating.China has the highest carbon black output in the world,but there is still a big gap between China and the world’s top in the level of carbon black production technology.In recent years,with the continuous increase of carbon black production capacity,the overall situation of the carbon black market shows that the supply exceeds the demand and the market competition is increasingly fierce.In addition,the impact of policy,environmental protection and other factors has made it more difficult for the carbon black enterprises to operate.Mainly engaged in the research and production of high purity carbon black for high-performance green tires and rubber products and the production of special carbon black for power cables and plastic master materials,LK company is a rapid rise of high-tech enterprises in Shandong Province.Since its establishment in 2001,the company has always been committed to improving the technical level of industrial and chemical production,striving to explore new markets,creating good performance for the enterprise and providing better services to customers.Over the years,it always adheres to the credibility,quality as the root,service as the body of the operating principle.With the company’s continuous scientific research and technological reform and innovation,the carbon black products with excellent quality and perfect service produced by LK are sold throughout the country.With the continuous expansion of the company’s production scale and the increasingly fierce competition in the carbon black market,it is essential for LK to formulate a clear competitive strategy suitable for the development of the company in order to make up for its strengths,seize opportunities and avoid threats so that it can achieve steady development in the current rapidly changing development wave.In the research and analysis of the macro environment and industry environment of the black carbon industry,it is found that the current black carbon industry has the following external opportunities:the national policy support;the advent of rapidly developing period due to the shortage of mid-to-high-end carbon black products;the further development of supply-side structural reform;the enhancement of technological innovation and independent research and development capabilities;little threat posed by the potential entrants to the industry;the advancement of energy conservation and emission reduction and the achievement of sustainable development.Major external threats include the risk of product price fluctuation;the decrease in demand;the threat of substitutes;fluctuations in the price of raw oil;the burden of investment in environmental protection and the threats from existing competitors.The internal strengths are the followings:huge investment in technology research and the strong capacity of development and research;the sound quality management system;the advanced production equipment and facilities and the high-qualified products;little inventory funds,high resource utilization due to the achievement of resource recycling;customer base with high quality,stability and balanced structure;obvious location advantage;low transportation costs as the factory is close to the source and market of raw materials.The weaknesses of LK are as follows:low communication efficiency caused by numerous functional departments;the large proportion of low educational background personnel and insufficient high-end specialized talented professionals;brand awareness is not high enough;management skills need to be improved;the penetration of corporate culture is not strong enough.On the basis of the above analysis of internal and external environment,it is concluded that the best competitive strategy for the development of LK’s carbon black business is differentiation strategy.Based on the differentiation strategy and the actual situation,LK will focus on technology development,strengthen logistics management,strictly control production,improve sales services,so as to highlight its own characteristics,expand the influence of the brand,improve the core competitiveness of the enterprise,and establish a solid competitive advantage.In order to ensure the effective implementation of the company’s competitive strategy,it will provide support and guarantee by strengthening the construction of corporate culture,adjusting the organizational structure,strengthening the financial security,the human resource management and the supplier management.