Research On The Competitive Strategy Of P Company's Architectural Coatings Business In China

With the rapid growth of economy and the rapid growth of real estate investment in recent decades,the Chinese architectural coatings industry has been rapid growth.According to statistics released by the National Bureau of statistics,total coatings production is 16.48 million tons in 2014 in China,gross output value of total coatings is 431.83 trillion Yuan,the Architectural coatings is about 1/3 of total coatings industry.China is the biggest coatings production country,but China's coating companies are not as strong as the production volume.In China's architectural coatings market,Nippon and Dulux which is the Chinese market leaders takes advantage of high technology and brand awareness,dominate in premium and medium coatings,the No.3 Hua Run is in struggle because of it being acquired the Valspar Corporation and solvent base wood care coatings market shrink,the next follower Carpoly's brand image is only in medium and low end products which is mainly in 2nd and 3rd tier cities or even lower.It is difficult for them to threat the market leaders.Other paint companies which some special reasons,they can only occupy the low-end market or some niche segments,and they also cannot become very strong.Market leaders' market share gradually improved and the whole industry trend to concentration.According to the experience of foreign mature market,with the development of China's paint industry,the market concentration will be greatly improved;the market structure will gradually become stable.Therefore,in the process of concentration,how to adapt to the new market demand and rapid increase market share is very meaningful.This thesis analyzes the macro environment and market characteristics of China's current architectural coatings industry and the potential impact of the current environment on P Company through the analysis of the development of the whole industry.Then the thesis lists the advantages and disadvantages of P Company in architectural coatings business,and formulates the competitive strategy of P Company.Finally,the thesis figures out some potential risks in the execution of differential strategy in P Company,and provide some advice to fix these problems.