Challenges of the building material industry in China : a case study of Shanghai's Advance Materials Co. Ltd.

Abstract

This report studies challenges facing the building materials industry in China. A case study on the Advanced Materials Co. Ltd. of Shanghai, a state-owned enterprise, is carried out to aid the development of this report. The report explores issues that this company encountered with regard to changes in its business environment especially with China’s entry into the WTO. Porter’s Five Forces Theory and Value Chain Analysis are used to study the existing strategies that this company is using. Furthermore, the authors also make recommendations to allow the company to enhance its long-term growth and competitive advantage. On the whole, the analysis shows that this profit-driven company is well positioned to take on challenges faced by the industry in the foreseeable future.