Introduction: The paper industry has long been engaged in discussions about the path of transformation and upgrading for Chinese paper companies. For any company, setting a clear and accurate development strategy is one of the fundamental steps before embarking on this journey.
When companies are crafting their development strategies, the concepts of "bigger" and "stronger" often become intertwined. These terms may seem straightforward at first glance. In general, "bigger" refers to expanding the scale and capacity of the business, aiming to grow in size. On the other hand, "stronger" means deepening expertise in areas where the company already excels, striving to become a leader in those fields.
So, when faced with these two options, how should companies decide? According to analysts from the International Pulp and Paper Network, enterprises should not only consider their own market positioning but also closely monitor industry trends and external changes. The evolving environment plays a crucial role in shaping a company’s strategic direction. Moreover, these two aspects shouldn’t be treated as separate choices—they need to be integrated organically. A company should aim to grow bigger while not neglecting the need to become stronger; at the same time, being strong should go hand in hand with growing in scale.
In the past, during the rapid growth phase of China's paper industry, many companies opted for "bigger" due to oversupply in the market. This was a direct result of market conditions influencing corporate strategy. However, some companies focused solely on expansion without adequately investing in strengthening their core competencies. As a result, they failed to develop high-value, specialized products in their respective fields. This lack of balance led to slower growth, and eventually, stagnation as the market became saturated and the industry slowed down. Many found themselves struggling to find a breakthrough, feeling uncertain and lacking direction.
However, it's not too late for these companies to make adjustments. With the overall industry downturn, many paper companies face similar challenges. Now is the time to seek innovation, identify new opportunities, and create space in untapped markets. In our view, the current industry landscape makes “strengthening†a more viable choice. Beyond maintaining their existing positions, paper companies must think creatively, invest in technology, and increase product value. After all, true strength and size are reflected through technological leadership and innovation—key indicators that define a company as both strong and big.
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Yiwu Shengshang Stationery Co., Ltd. , https://www.ss-stationery.com