Study On Development Strategy Of Qianxihe Mengxi Cement Company

In recent years, cement industry of China changed in turn the world upside down.It has produced a strong pulling effect on cement industry especially after our country put forward ten policies that four trillion stimulates and expands domestic demand in 2008 November. With the intensive production of new technology, new equipment constantly replacing the small, scattered backward mode of production and the development of new dry process cement industry technology and attract worldwide attention, cement industry become rapidly the serious excess capacity industry in our country. As the national policy regulation makes the cement industry reshuffled and restructured accelerating, this will further strengthen the regional leader position in its industry. Because cement industry as a traditional pillar industry in building materials industry of the Inner Mongolia Autonomous Region, the cement industry has developed rapidly and productivity has increased sharply with the rapid development of the national economy of the autonomous region. Cement is the most serious homogenization products, On the results of the current production enterprises survey, products have no almost difference whether with the advanced or backward technology. the cement has low unit price, its storage time should not be too long, and long distance transportation is not economic, therefore the development of cement industry has a strong regional characteristics. As fixed assets investment is large in the period of cement enterprises construction, exit barriers is high and upgrade and transformation of the traditional industry is difficult, cement enterprises are faced with hitherto unknown circumstances and challenges facing many stringent control policies and fierce competition.Since from the industry layout of Mengxi cement enter the central area of Inner Mongolia(referring to the surrounding area 200 kilometers range of Hohhot)in 2009, the central area reached nearly 14000000 tons of cement production capacity in a short five years Along with the urgent situation of national cement overcapacity, the central area of the Inner Mongolia Autonomous Region also appeared the same problem. powerful enterprises in central area of Inner Mongolia is relatively concentrated, the market competition is intense, but the profit is low. As nation policy suppress overcapacity industry and implement high environmental standards in high energy consumption and high pollution industry it made the cement enterprises rethink its future development. Based on the above background, this paper researched the development strategy of Qingshuihe Mengxi cement company, and it based mainly on the practice and with the supplement of theory, started from the actual business, and then worked out corresponding strategy so as to achieve enhanced implementation of enterprise development ability and promote the enterprise sustainable development target.The paper analyzed Qingshuihe Mengxi cement company’s external business environment and internal conditions with the PEST analysis method and the Potter five forces model, summed up the opportunities,threats, advantages and weaknesses what the Qingshuihe Mengxi cement company faced through the SWOT analysis method. The paper used SWOT matrix model and based on company’s advantages to seize the opportunity, evade the risk, improve the shortage, and choose the strategy and then put forward the development strategy of Qingshuihe Mengxi cement company. The establishment of development strategy frame referred common strategy and formulated the general program from the company’s vision and strategic objectives, business strategy and functional strategy. it grasped firmly the results of SWOT analysis, and finally it formed the development strategy of Qingshuihe Mengxi cement company.