Research On Competitive Strategy Of XY Coal Mine

Since the mid1990s, with the changing of the economic environment in China and the constant deepening industrial reconstructuring in energy, the coal industry began to appear oversupply. The competition has been increasing between the coal and the alternatives, as well as in the coal industry. Especially in recent years, in the grip of recession, a lot of coal mining enterprises get into difficulties. As a sign of a medium-sized state-owned coal, based in mining extractive, XY Coal Mine occurs quarterly losses and the profit level is continuously descending, not study of strategic environment and analysis market competition, but simply pursue the raw coal production. Therefore, this paper based on the investigation into XY Coal Mine, aims at finding the problems and deficiencies in the competition, in response to design an optimal competitive strategy and safeguards measures.This paper focuses on the core issues of XY Coal Mine market competition strategy. Firstly, the paper analyses on the overall situation of the coal, with emphasis on analysis of its operation and competition status. Meanwhile, it identifies the problems in the competition that exist in the coal mine, using Michael Porter’s Five Forces Model. Secondly, makes a systematic analysis on internal and external environment of XY Coal Mine from the study of macro-environment and installation industry development, and identifies the management situation and development trend of coal industry, and especially concludes many external opportunities and threats the coal mine is facing in the market. Furthermore, by using SWOT matrix which is based on external opportunities and threats and internal advantages and disadvantages, the paper designs a suitbale competitive strategy for XY Coal Mine,that is Overall Cost Leadership Strategy. Finally, optimizes these two aspects from the value chain optimization and the cost driver control, and puts forward the specific practice measures.This paper adopts two kind of analysis tools:Five Forces Model and SWOT matrix. Through the analysis, the paper proposes a series of feasible competitive strategic programs, with strong operational. The implementation of the strategy would help to increase the production and management capacity of XY Coal Mine, in order to maintain a competitive advantage in the fierce market competition. This paper also looks farword to playing a positive role and significance to the coal mine and even to the coal industry.