Shaanxi Province, The Cigarette Industry Development Strategy Research

Introducing the developing current of international and inland tobacco industry, the thesis analyzed the radical circumstance of representative tobacco industries out of Shaanxi province and every one of tobacco industries of Shaanxi province from 1995 to 1998 in detail. Through contrast analysis, it is known that tobacco industry of Shaanxi province is faced with grimness challenger and threat .By reason that great productive dimensions and vantage of resource and technology and make the most of equipment and manpower resource and aggrandized investment of technology transform and selective product of tobacco industries out of Shaanxi province, so production of tobacco industries out of Shaanxi province are provided with low costing and powerful struggle. Finally, the tobacco industries out of Shaanxi province are provided with finance and outstanding achievement favorable development; the other way round, it is known that the principally characteristic of tobacco industry of Shaanxi province is small investment of technology transform and limited productive dimensions and graveness waste of resource, so production of tobacco industries of Shaanxi province are provided with high costing and absent struggle. The tobacco industries of Shaanxi province are provided with aggravation of finance.The quantitative analysis and the qualitative analysis are used in the thesis .The quantitative analysis is including PPM analysis and market analysis and finance analysis in the thesis. The qualitative analysis is including Porter element analysis and value chain analysis and behalf relevance analysis andcompetitor analysis and strategy mass analysis and decision-making tree in the thesis. According to developing instance of tobacco industry of throughout country and Shaanxi province, which is major history and current situation of tobacco industries of Shaanxi province, the thesis is brought forward the developing strategy of the Merger and the Strategic Federation. The imagine of strategy of the Merger and the Strategic Federation is: The crosswise Merger is major strategy, the lengthways Merger is minor strategy; The direct Merger is major strategy, the indirect Merger is minor strategy. Several tobacco groups are formed after Merger. They abide collective agreement including assign project of output and sort and exploitation and so on .the agreement is established in order todetracting costing and improve struggle power and increase benefit of economy. In the period of actualizing the strategy of the Merger and the Strategic Federation, as perpendicular leader of tobacco industries of Shaanxi province, the Tobacco Department of Shaanxi Province establishs definite guidelines and target and regulative direction in order to induce industry Merger. The one step, the tobacco industries of Shaanxi province successfully apply management strategy of inside administering. The tow step, the Merger is applied that one management strategy of outside transaction. The strategy of the Merger and the Strategic Federation can solve problem, such as small & complete and repeated construct and serious waste and high costing and badly quality of product and minor portion of market and low benefit of economy and aggravation of finance and so on .The industry is availability expansion of the capital. The industries will come into being own price conception .