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A Study on the Competitive Strategy of UPM in China Market

Author: ZhangShuFang
Tutor: TianZhiLong
School: Huazhong University of Science and Technology
Course: Business Administration
Keywords: Papermaking industry External environment analysis Analysis of internal conditions Enterprise competition strategy
CLC: F272
Type: Master's thesis
Year: 2012
Downloads: 18
Quote: 0
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Enter new century, Chinese paper market is booming, the international major papercompanies to invest in china. UPM Corporation is a Finland the world’s largest papercompany, a total investment of nearly$1200000000in china. At present, the Chinesemarket has become the major international paper company and the focus of competition,forward position and profit growth point. Therefore, in close association with UPM groupcompany globalization strategy, integrate various resources, formulate clear competitivestrategy has very important practical value and realistic significance.In this paper the authors in the European UPM group of companies engaged in themanagement of many years, and in the UPM group company the actual data as theresearch object, using strategic management the most widely used three kinds of tools,including SWOT analysis, PESTE analysis," Five Forces Model" analysis method,through a combination of theory and practice research methods, first to the UPM groupcompany external environment is divided into three levels: the macro environment,industry environment and competitive environment analysis, find out the enterprise facesthe advantages and disadvantages faced by enterprises; then through UPM groupcompany’s internal condition analysis in three aspects: enterprise resource analysis,enterprise capacity analysis and the analysis of company core competition ability,combine results of the analysis, summed up the enterprise has competitive advantage andthe inferior position; then, in all analysis results on the basis of the construction of SWOTmatrix, is proposed for UPM group of companies is the competitive strategy growthstrategy; finally according to the growth strategy target on China market can beimplemented by the refinement condition. UPM group company growth strategy:consolidation in the forest biomass market status, based on current trends in thedevelopment of the industry and the current situation of economic development, in Chinaand the Asia-Pacific region to the forest paper integration project of active development,investment in the construction of building their own raw material forest base and the pulpmill, the supply of raw materials can be guaranteed, resulting in production in China baseas the center of supply and marketing is achieved within the end of industrial chain. In a cost competitive advantage of low emission energy rapidly developing field, strengthencost leading position in China and other emerging market development, improve costcompetitive advantage pulp proportion, through proprietary technology to promoteproduct update and develop new business.This paper take the UPM group as a case, aims to study the UPM group companyhow to succeed in China localization strategy. With a view of the UPM group companyfuture market in China the implementation of competitive strategy, provide a guide andreference.

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