Research On The Competitive Strategy Of Ethylene Oxide Derivative Business Of H Company

Chemical product manufacturing industry is an important industry to promote economic and social development.Since the reform and opening up,China’s chemical industry has made remarkable achievements and developed into the world’s largest chemical product production and manufacturing base.But our chemical industry for a long time,do not pay attention to independent research and development,tend to take the principle,the industry has always been to win the scale of production capacity leading to serious product homogeneity,industry large but not strong development is not healthy.The "14th Five-Year Plan" proposed to change the previous development mode based on scale expansion into "intensive cultivation" of high-quality development mode,chemical industry to fine,professional development,improve product competitiveness.H Company is a large international chemical enterprise.In recent years,H Company has been in the process of rapid development,with its business scope ranging from a single bulk chemical business to a variety of chemical raw materials including bulk chemicals,fine chemicals and highperformance materials.In the process of business expansion,ethylene oxide derivatives as a link of the company’s industrial chain is also put into production.However,the domestic bulk products of ethylene oxide derivatives such as polycarboxylic acid water-reducing agent monomer,fatty alcohol polyoxyethylene ether,polyethylene glycol and other bulk products have far excess capacity,and the operating rate is only maintained at 65.4%,and the industry competition is fierce.However,the high-end ethylene oxide derivatives are still dependent on imported products.Under the influence of the China-Us trade war and the COVID-19 pandemic,the supply stability and product cost have posed challenges to the development of domestic enterprises.Therefore,the ethylene oxide derivatives business of H company is faced with the current situation of excess production capacity of bulk products,fierce market competition and high-end products cannot form support for the business.Enterprise business is difficult to make profits,sustainable and healthy development of certain challenges.In this paper,H company ethylene oxide derivatives business as the research object,on the basis of strategic management and competitive strategy theory,the use of relevant theories and management methods,including PEST analysis,general competitive strategy type,five forces model,IFE/EFE matrix,SWOT analysis and QSPM matrix,etc.The competitive strategy of H Company’s ethylene oxide derivatives business is analyzed and researched comprehensively.Firs of all,the research reviews the development and research status of enterprise strategic management and competitive strategy theory.At the same time,the literature of chemical industry competitive strategy is reviewed,and the management tools and models used in the research process are determined to provide a theoretical basis for the research.Secondly,the problems existing in H Company’s ethylene oxide derivatives business were identified through internal investigation,which provided a starting point for the research.After that,the EFE matrix is used to make an indepth analysis of the external macro environment and competitive environment of H Company’s ethylene oxide derivatives business.The external key factors are sorted and quantitatively evaluated,and the opportunities and threats of the external environment faced by H Company’s ethylene oxide derivatives business are clarified.Then,it introduces the general situation of H Company’s ethylene oxide derivatives business,analyzes the resources and capabilities of H company and uses IFE matrix to quantify the internal key factors,and defines the competitive advantages and disadvantages of the development of the enterprise.Then,on the basis of EFE and IFE analysis,SWOT analysis is used to make an overall analysis of the opportunities,threats,strengths and weaknesses faced by the business,and feasibility analysis of the cost leadership,differentiation and centralization strategy of H company’s ethylene oxide derivatives business.Then the QSPM matrix is used to evaluate the three general strategies quantitatively,and the differentiation strategy is determined as the optimal competitive strategy of H company’s ethylene oxide derivatives business,and the four implem entation measures of product differentiation,service differentiation,marketing differentiation and image differentiation are put forward.Finally,the research puts forward safeguard measures for H company to implement differentiation competition strategy from five aspects:corporate culture,human resources,product quality,brand building and service ability guarantee.