China Aviation Oil Corporation Diversification Strategy Research

With the exclusive management breaking of the aviation oil service, thegradually opening of domestic aviation oil market, the enter of domestic andforeign aviation oil supplier, the dominant position of Chinese Aviation OilCompany(CAO)faces great challenges. Its development space is very limitedfor that Upstream restrained by the domestic and foreign petroleum merchant,downstream on the airline company. Facing these challenges, CAO needs tocomplete the reorganization and integration as soon as possible, to clear aboutthe developmental strategy, to enhance management efficiency, so as torealize continually fast growth, the road of related multiplication developmentis available.In respect of development strategy, profited from learning relatedeconomic and management knowledge from domestic and foreignwell-known scholars, utilized the method of depth interview, informationcollection and analysis, as well as the region market investigation, analyzedthoroughly the external environment and internal resources and the ability ofCAO, through the method of the SWOT analysis, this paper states that therelated multiplication strategy adapt CAO to such new circumstance. The wayto realize fast growth for CAO is to conduct the related multiplication servicesaround the aviation oil service, to consolidate and develop its core ability, bestrong and big enough to win the market competition.By personal research, this paper hope to provide a correct strategy framefor CAO. Meanwhile, as the implementation of related multiplication strategy,commonly sharing the resources of manpower, equipment, fund, knowledge,skill, relations, and brand of full company, thus reducing the cost, dispersingmarket risk, we hope to gain the coordination effect by making the best of theresources and market force, as a result CAO obtain the considerabledevelopment.