Selecting an Appropriate Strategy to Increase Petrochemical Product Sales (Case Study: Iranian Petrochemical Industry)

Abstract

This article aims to find the best strategies which help increase petrochemical products sales in Iran using multivariate regression model, Grand Strategy Matrix (GSM), and SWOT matrix. Market Development, Market Penetration, Product Development by creating and developing chemical cities or parks, petro-chemical refineries, and Especial Economic Zones, Vertical Integration, and Concentric Diversification with Diverse Portfolio were considered independent variables, while Increasing Petrochemical Product Sales is dependent variable. Then, each of above mentioned factors affecting the sales were ranked in order to take advantage of the highest added-value. The statistical population consisted of 140 experts, managers, directors, and customers involved in National Iranian Gas Company and Iran Petrochemical Company. Random sampling method was employed. A total of 57experts, managers, directors, and customers were enrolled as sample size. Data were collected using a five-option Likert scale questionnaire. SPSS, Grand Strategy Matrix (GSM), and SWOT[1] matrix were employed to analyze the data. According to the Cronbach's alpha (0.86), the reliability was verified. Market Development, Market Penetration, Product Development, and Concentric Diversification with Diverse Portfolio were found to be suitable offensive strategies to increase the petrochemical product sales. Product Development and Market Penetration are the most effective factors in increasing the petrochemical product sales. Therefore, they need to be taken into account.

[1]Strength, Weakness, Opportunity, Threats