The Research Of Shanghai Chemical Industry Park Development Co., LTD Growth Strategy

Shanghai Chemical Industry Park Development Company (SCIPDC) is astate-owned holding company established in1997, on behalf of the ShanghaiGovernment to develop Shanghai Chemical Industry Park (SCIP) whichlies at the north coast of Hangzhou Bay with the total planning area of30km2.SCIPDC is a typical development company with government body. Thecurrent business model is getting low-cost land resources from thegovernment, building infrastructure and attracting investment, selling theland to investor to achieve corporate earnings and support the rollingdevelopment of the industry park. Due to the limited land resources, suchbusiness model must be short-term and can’t be continued. Meanwhile,because of the macroeconomic regulation and control, industrial restructuring,updated land policy and environment protection requirement, it is difficultfor SCIPDC to use such business model more. Therefore how to restructurethe company and find a new direction for the company to go are key issuesfor enterprise operators to consider.This article is written from the perspective of SCIPDC operators. Firstly,the basic information of SCIP and SCIPDC will be introduced, especially forthe history of the company and its financial data. Then the basic theory and model for enterprise strategic analysis will be introduced and used to make ananalysis of the development strategy of SCIPDC for identifying the problemsin the existing business model. Finally, the strategy recommendations will bemade for the future development of SCIPDC. As result of the study, thefollowing strategic recommendations are made:1. SCIPDC should be transformed from single land developer to utilitysupplier and public service integrator. The target industries are chemicalproducer-service industries.2. Corporate-level strategy is a combination of stability and development,and development-oriented strategy. SCIP is still the base of SCIPDC, SIPDCshould serve and develop SCIP first, and then look for the opportunity tomake business in the other domestic chemical industry park. The target is tobecome domestic first-class utility supplier and public service integrator forchemical industry.3. Competitive strategy should still be the differentiation strategy whichhas already been implemented on business. Try to avoid the cost-competitivefield, centralize all the resources to establish core competition ability.4. For functional-level strategy of the company, market leader strategyshould be the market strategy, to maintain local market share and then expandemerging market. To improve the financial capacity and expand financingchannel, seek listing for the entire groups are the main tasks for financialstrategy. To optimize human resources structure and to accelerate training andreserve senior management talent are the main tasks for human resourcestrategy.5. Company organization and management structure of flat managementstructure should be used, cancel the middle management level, set business division and functional department.