Research On The Competitive Strategy Of XH Company’s Silicone Business

In recent years,organic silicon has gradually replaced traditional raw materials and been applied to emerging fields,such as new energy vehicles,household products,building materials market,comfortable living areas and other fields.As the key raw materials,the demand for organic silicon products shows a rapid growth trend,and the market prospect of organic silicon is good.XH Company is the earliest manufacturer of organic silicon in China,and its sales volume of organic silicon products has been in a leading position in China.After more than 50 years of development,XH has transformed from a military enterprise into a large state-owned silicone enterprise.In the process of continuous development and innovation,XH is facing more and more difficulties and challenges.Internationally,foreign silicone enterprises have a high reputation and a higher degree of acceptance by customers.The profit space of domestic export enterprises is reduced.In domestic aspects,the national environmental protection policy is becoming increasingly strict,and the cost of raw materials and electricity is rising,leading to the price of raw materials such as silicon and methanol skyrocketing.In the past three years,the competitors have expanded their production rapidly,which makes XH feels abnormal pressure in the market competition.From the internal aspect of XH Company,there are technical iteration bottlenecks,production management costs are high,the production capacity of downstream products has not been fully released,and high-end products are few.Under the complex international situation and industry environment,how to maintain the market share of silicone products is our research topic.This paper takes the actual situation of XH Company as the research topic,based on the strategy-related theories and tools,and makes a comprehensive analysis of the environment facing XH Company.Through internal and external environment analysis,factors affecting the development of XH’s silicone business are analyzed,PEST is used to analyze the external environment of XH,Porter’s five Forces model is used to analyze the environment of the silicone industry,and CPM matrix is used to analyze competitors.Through the above three analyses,key external factors affecting XH’s silicone business are obtained.The internal environment of XH is analyzed,and the key internal factors are obtained from the aspects of enterprise resources,enterprise capability and enterprise management status.Through the analysis of internal and external key factors of SWOT matrix,relevant strategies suitable for XH Company are obtained.Through the analysis of QSPM matrix,it is concluded that the competitive strategy of XH Company’s silicone business is cost leadership strategy based on technological innovation.According to the analysis of this paper,four strategic measures are formulated.First,through rational planning of the strategic layout of the upstream industrial chain of organosilicon,through technological innovation to reduce the cost.Second.Strengthen the ability of independent innovation and adjust the product structure.Third,with the theme of promoting high-quality development,firmly implement the concept of sustainable,green,intelligent,lean and international development,and form the development model of the world factory.Fourth,strategic measures to increase the innovation of basic work in major special fields.In order to ensure the smooth implementation of the strategy,relevant safeguard measures should be highlighted from the five aspects of Human Resources,HSE,Management,Quality and Delivery time.