Market Competition Strategy Research Of Yankuang Electrolytic Aluminium Company

Yankuang Electrolytic Aluminium Company, under the administration of Yanzhou Mining Group, is a non-coal industry developed by the Group to take advantages of its relatively abundant coal resources, in order to utilize coal by-products and realize complementarity between industries. In recent years, aluminium industry of our country has sprung up and developed rapidly. Now its expansion has created a passive situation:production capacity is overflow, market is saturated, and importing reliance of related resources is increased year on year. This forced the country to convert its policy from encouraging development into taking control over new constructions. As the macro-control policies introduced constantly, aluminium industry of China will be confronted with a situation more complicated. Then, in such a new environment, which is more mature and with a more aggressive competition, Yankuang Electrolytic Aluminium Company must have its own strategy to occupy a position of its own.This paper raises a strategy choice issue related to Yankuang Electrolytic Aluminium Company after statement of competitive strategy theory. In order to make clear the macro environment the company is facing to, PEST tools are used, the five-force model is applied, a conclusion is therefore arrived as below:It is a good opportunity to the company in all respects such as macro-economic recovery, social contribution rates, downstream demand, and policy support from Yanzhou Coal Mining Group, but it is also meeting threats from intense market competition, the pressure from energy conservation, the tightening energy policy, increased raw material prices, etc.. Through analyzing resource conditions within this company, this paper believes the company possesses its competition advantages in resource capacity, financial capacity, production equipment, corporate reputation and industry chain, but the disadvantages like high consumption, limited production scale, unsatisfied human resources, geographical position, are constraining the growth of the company. After a comprehensive analysis of the external environment and internal conditions based on SWOT tools, this paper compared three competitive strategies, and, according to the specific situation of the company, a low-cost competition strategy is finally considered as the best choice. Then, measures to implement such a strategy are suggested from all aspects like corporate culture, organizational structure, human resources, technology innovation, marketing, and financing.The paper comes to a conclusion of this:Although the aluminum industry as a whole is facing a grim situation, Yankuang Electrolytic Aluminum Company is still very promising. We are confident that it will win the competition, as long as it grasps the opportunity, avoids risks, utilizes its own advantages, and effectively implements a low-cost competition strategy.After a detailed analysis of competitive strategy and some countermeasures to ensure its implementation, this paper is striving to provide scientific evidence to Yankuang Electrolytic Aluminum Company for making business decisions, and sharing valuable experiences with business partners, especially those so-called "coal-related aluminum" joint ventures.