A Study On Industrial Restructuring Strategy Choice Of HuBei Province Salt Company

As an industry with a history of more than two thousand years, salt industry was always the main income source of national treasury in feudal society from the period of First Emperor of the Qin Dynasty. Our country has also been exercising control in salt industry. But with the boosting of market economy, more and more impacts and threats to salt industry arise. This year, State Council has included restructuring of salt industry into restructuring of the economy, which suggests that restructuring of salt industry delayed for five years due to central restructuring shall start up this year. Meanwhile, according to the Protocol on China's entry into WTO, China must lift the trading restrictions of salt and tobacco gradually within five years after its entry. What shall the restructuring of salt industry be focused on? What problems are to be resolved? What influences will be exerted on the current production & operating mode of salt industry? And how shall we deal with it and make a correct choice? All these issues are especially concerned in the industry. On account of the above research demands, the paper, under the guidance of strategic management theory, endeavors to discuss how to adopt flexible and varied organizational forms to form advantages in competition in face of intricate and complex competitive situation, so as to create an overall competitive advantages for it self on the basis of thorough analyses on salt industry's history, present state, market structure, logistics, marketing patterns, resource conformity, industry merger, mode of salt management, developmental trend and strategies choosing in Hubei as well as researches on Hubei Province Salt Company ( Hubei Administrative Bureau for Salt Affairs). Starting with the definition of strategic management, this paper, by way of strategic analysis, gives an analysis to the professional structure of external environment, source allocating capability inside enterprises (G-PEST) and Porter's five-driving force competition mode. In addition, it also contains a comparative analysis to the restructuring of value chain in Hubei salt industry. Drawing on the restructuring model of other provinces, this paper aims to, through the analysis of chemical sections in listed companies, make a research of Hubei salt industry, so as to contribute to the development of Hubei salt industry in this historical period of great opportunities.