Sun Paper: Building Competitive Differentiation International Paper Group

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“To understand the distinction competition, we need to very first know what the Red Sea, Blue Ocean Method.” Sun Paper vice president, chief engineer stated to be the initial in Guangdong.

“Existing market place is composed by two oceans: the Red Sea and the blue sea. Enterprises to seek a lasting, lucrative growth, frequently diametrically opposed to compete with its rivals. Nonetheless, head-on competitors can only make the enterprises into a bloody “Red Sea”, that is a known competitive marketplace space, and with rivals scramble for shrinking income. there is no far better way? avoid absolute competitors, beyond the competitors, appear for other approaches to develop a new market, which is the “blue Sea technique. “Blue Ocean represents the prompt development of the market space, representing the creation of new demand, representing the higher-margin development opportunities.

Most obvious examples in this regard as the prior House Appliances Market. As the product homogenization of significant, intense competitors, have all cut costs to win by one particular point to the poor dead-finish profit of vicious competition. Tragic example of a piece of cake absolutely everyone to points, we ultimately do not make funds, has not accomplished really tired, extremely challenging. Income of a product is also wealthy, is bound to stick to rival investment will sooner or later lead to reduced prices, reduced gross margins, the current paper industry has been happening so far. With foreign capital Papermaking Giant maintain landing in China, National Paper and foreign paper firms on the same platform in a fierce competitors, no door on the direct participation of the International Paper Competitors. Presently Coated Paper Capacity of four million tons nationwide, next year there will be a new release of 400-420 million tons of production capacity, like 1.two million tons Chenming, China and Thailand 800 thousand tons, the Japanese Prince (Nantong) 80 tons, Gimhae APP 1.six million tons and paper businesses tough on the project, major to overcapacity, fierce competitors, not a rational state.

The Sun Paper is to keep away from such non-rational selection-producing and investment, the difference in the way of competitors. It demands us to first realize the true needs of our buyers, and then be targeted for technical, investigation and improvement, capital investment and assistance such a big quantity, and the corresponding market place expansion. We invest in the quantity 23 machine, a series of specialty fine paper, to the students with a new notion of the burdens of high-grade paper sorts with the most sophisticated modern day paper machine, the world’s top class technologies, with higher prices of Takamatsu thickness APTMP pulp to make, the company’s competitive differentiation that the first crucial step.

Business plans to develop 23 such as paper machines, paper presented to the non-sun Coated Paper And obtain the country’s largest, which will also 1760,1880 and so on our personal small machine a particular stress. So these lines need to be timely and appropriate structural adjustments, optimize product, fantastic efforts to develop such as bond paper, security verify paper, self-adhesive base paper, water-proof beer stickers Healthcare Devices Paper, stainless steel mount, matt coated paper and other specialty papers, to carve out a niche, which is the organization competitive differentiation in the second critical step. The implementation of competitive differentiation, it has to high-end improvement, and continually strive for excellence, is to firmly hold the top of the pyramid, rather than general popularity. To make confident that when buyers use Packets , Liquid bag, cup paper, cardboard and other food goods, must naturally think of “Multinational Sun” is the best brand the consumer when employed, which includes books, magazines, and a series of specific non-coated paper paper, it ought to naturally feel of “The Sun” is the ideal brand. Only such a higher-end merchandise with high added worth, only such high-tech products to create high returns, which is the company’s third competitive differentiation crucial measure.

Sun Paper in the industry at the beginning, produced it clear that Sun’s improvement strategy is to move up the paper, refined, unique, differentiated competitive routes, generating the company’s core competitiveness can not be copied, which also received the majority of institutional investors The high degree of identity. The same is correct for numerous years we have been practicing for. For instance, many industry peers in the country have accelerated the integration of forest and paper, to construct their personal quickly-developing forest base. We think that, relative to domestic rents, high expense, appropriate for afforestation climate is not ideal, regional currency long-term appreciation of such variables, the Lao appropriate for rapidly forest growth and the climate, rich forest resources, low human capital, extremely inexpensive land contract charges minimize their production charges a lot more to protect the supply of raw components.