Facing the development of the pharmaceutical industry in the 21st century, the arrival of integration and the competition of various packaging materials, China's pharmaceutical packaging material industry is facing a new historical development period. Crossea pharmaceutical packaging materials company, as one of the earliest entering the industry, the company chose to develop the initial cost leadership strategy due to a variety of reasons, such as the cost pressure transmission from downstream pharmaceutical companies, the price war of competitors, and the cost pressure caused by the price fluctuation of raw materials and energy. However, driven by economic transformation, the internal and external environment and industry environment of pharmaceutical packaging materials enterprises have changed, and the original cost leadership strategy has exposed many problems, such as no advantage in product pricing, low price standardized products can no longer meet the needs of downstream customers and so on. In this case, the cost advantage under the original strategy is gradually lost, and its market share is gradually shrinking. In recent years, its development has been stagnated, and it is in urgent need of transformation.

The main purpose of this paper is to help small and medium-sized pharmaceutical packaging materials manufacturers represented by Crossea Pharmaceutical Packaging Materials Co., LTD., to seize new market opportunities, get out of difficulties and reshape their competitive advantages. Starting from the research of competitive strategy theory and combining with the current situation of the company's competitive strategy, this paper analyzes the current low cost strategy, the method of low cost strategy to cost control, and the problems exposed in the competition. Through PEST analysis, five forces analysis model, etc., find opportunities and threats for company development. Through internal environment analysis, combined with value chain analysis, identify the advantages and disadvantages of the company. In comprehensive analysis of Crossea pharmaceutical packaging materials company based on the advantages and disadvantages, and the opportunity or threat to face , establish IFE and EFE matrix, SWOT matrix in making strategic combination, to the four strategic combination under the cost leadership, differentiation and focus strategy of feasibility analysis, based on QSPM matrix, it is concluded that the current company is more suitable to choose the differentiation strategy. Referring the actual situation of the company, the optimization measures of creating differentiated product capabilities, providing differentiated services, shaping differentiated brand image, strengthening cooperation with pharmaceutical enterprises in research and development, strengthening talent echelon construction and other safeguard measures, providing reference for the follow-up development of Crossea Pharmaceutical packaging materials Company.

The research conclusion of this paper shows that Crossea pharmaceutical packaging materials company relies on market opportunities such as industrial policy support, technical change support, consumption upgrading and increased demand. Through the implementation of differentiated competition strategy, it promotes the enterprise to greatly improve its products, services and brand image, improve its business effect and comprehensive competitive strength, and meet the development needs of the company. In addition, the optimized differentiation strategy implemented by Crossea pharmaceutical packaging materials company has reference and reference significance for other enterprises in the industry.

Key words: Competitive Strategy; Pharmaceutical Packaging Materials; Cost Leadership Strategy; Differentiation