The Research for Competition Strategy in JiangXi Tobacco Industrial Co, Ltd under the New Age
|School||Dongbei University of Finance|
|Keywords||Competition strategy SWOT analysis Jiangxi tobacco Industry Co,Ltd. Jinsheng|
With the entrance of new strategy development era for China, the tobacco industry has also begun a new period of reform and improvement. The structure of local protectionism will be broken down gradually, which would push forward the off-site development of domestic tobacco corporations and enrich the variety of national brands. As for tobacco companies, explicit positioning and definite competition strategy are of vital importance if they want survive or even stand victorious in the new period of fierce competition.This paper will summarize my personal working experience in JiangXi tobacco industrial Co. Ltd. It will be on the basis of competition strategy theory, and adopt the five-power model to analyze the competition circumstances and analyze the competition capability of well-known brands and Jinsheng brand with the assistance of SWOT analytical method. At last. I will try to provide potential improving methods for the brand.This paper is constituted by 6 parts:Part 1 introduces the background and implication of the research for tobacco industry companies as well as the fundamentals of Jiangxi tobacco industry, and then will summary the research structure. Part 2 focuses on the methodology and theories of competition strategy analysis and summaries of focus on strategy, differentiation strategy, cost leadership strategy, then introduce the framework of SWOT analysis. Part 3 provides an overview of China’s tobacco industry together with its history, brands status, and preliminary analysis of Jiangxi Tobacco Industry Co, Ltd and the industrial opportunities and threatens. Part 4 discusses competition strategy for strong domestic brands and analyzes the example of Hunan and Hubei tobacco industry Co, Ltd to provide reference for Jiangxi tobacco industry Co, Ltd. Part 5 provides specific demonstration of Jiangxi tobacco industry co, ltd and its competition strategy as well as its potential threatens and weaknesses in comparison with strong brands. Part 6 proposes improvement advice for Jiangxi tobacco industry co, Ltd.Jiangxi tobacco industry co,ltd was established in 2005, it was constituted by four factories including the Nanchang tobacco factory, which is the main part of the company. Ever since its establishment. Jiangxi tobacco industry co. ltd has been focusing on mergers on the brands and make Jinsheng core position in its marketing system. Compared with other tobacco industry companies in China. Jiangxi tobacco industry company seems to be weaker no matter in its capital scale or profitability index. Although the Jinsheng brand has shown rapid growth since its birth, it also shows some drawbacks in brand development, such as:scarcity in brand culture, insignificance in channel construction. As for the issues above, this paper will try to provide some improving advice, including:culture restructure, channel excavation, staff promotion system construction as well as improvement in coordination between industry and commerce procedure.In summary, the main factor that influences Jiangxi tobacco industry is its relative historical accumulation, therefore much should be done in the innovation of regime and brands for Jiangxi tobacco Industry Co, Ltd. so as to obtain its position in the adjustment of tobacco market. The traditional epitaxial extensive model is not suitable for Jiangxi tobacco industry co,ltd, and the company should establish the leadership of Jinsheng brand, proposes the differentiation strategy and characteristic brand construction so as to conform of trends of industry innovation and reform and exhausting reduction process, all of which will make the company leader in the market of distinguished tobacco brands.