The Strategy Research Of Shenhua Group In The Railway Logistics Market From Tianjin To Baotou

As China's largest coal enterprise, Shenhua Group has a wealth of railway resources. It is the only one with its own railway company. Shenhua Railway from Baotou to Tianjin only shipped the Shenhua Coal before 2005. Shenhua Railway shipped nothing from Tianjin to Baotou, which not only is a huge waste of logistics, but also is not consistent with a low carbon economy. Premier Wen Jiabao visited the Shenhua Group in 2005, and he proposed to carry out returned logistics. Shenhua Group start the work from 2006, and launched in February 2009. Shenhua Group transported more than 140 million tons cargo from Tianjin to Baotou, which made Shenhua Group earned more than 70 million yuan. However, Shenhua Railway's capacity from Tianjin to Baotou can reach to 2 billion tons a year. Shenhua Group has great potential to exploit, but Shenhua Group's market share is very low.Based on the background, the paper use game theory to analyzed the third logistics market, and get the conclution that Shenhua Group should take high service level of logistics services as its competitive strategy; analyzed the problem of demand and supply in the railway from Tianjin to Baotou logistics market and the current situation in the market; finally use the SWOT analysis method to analyze Shenhua Group's advantages,disadvantages,opportunities and threats; combined TOWS matrix to analyze the development strategy of Shenhua Group in the market; and proposed implementation of the strategy focus.