Research On The Development Strategy Of The Liaohe Oilfield Hengtaili Group

Upstream enterprises to adopt measures to reduce the production, services in the Liaohe Oilfield constant Terry development group challenges. In this context, the enterprise will be what kind of impact, should take development strategy, is crucial for the development of enterprises and even survival.In this paper, we apply a widely used management strategy tool---SWOT analysis to the Liaohe Oilfield Hengtaili Group. In terms of external environments, global oil prices and domestic policies are the political environment that is affecting the development of HengTaiLi; the economic development of main countries in the world, financial crisis, oil price trends, international oil firms’expansion in China, and domestic economic policies are the economic environment that is influencing the development of HengTaiLi; other environments such as the gradual completion of market economy in China and the increasing protection of natural environments are also of great importance to HengTaiLi’s growth. In terms of industry competition, several businesses of HengTaiLi are serving the Liaohe Oilfield, that is, at the lower end of the industrial chain. Therefore, HengTaiLi is not only controlled by upstream companies but also facing fierce horizontal competition, such as the entry of new firms, pressures from both the suppliers and customers. On the other hand, internally HengTaiLi has built its own highly educated personnel, improved its reputation, has relatively large resource advantages and nice corporate culture. However, some problems remain:small company size, lack of core competition, overly dependent upon the oilfield, etc.Based on the SWOT analysis, Hengtai Group should adopt a strategy of reversing (WO), take advantage of the opportunities brought about by the external environment, to take measures against the disadvantage of companies surviving, on the one hand, to seize the opportunities that exist to maintain the monopoly of regional resources,do a good job in the related party transactions; through the improvement of technological innovation system, and vigorously promote new technologies, accelerating the update of the new technology to implement technological innovation strategy to meet the different needs of evolving Party, improve competitiveness, income Chuangxiao, solid existing markets. On the other hand, for the enterprise main business since the excessive and core competitiveness is not strong, you should actively expanding in other markets, get rid of the over-reliance on the status of Liaohe Oilfield and the main business, and constantly improve the technological content, to further improve incentives management system, to achieve better development. In the medium to long term, with the step-by-step changes in enterprise disadvantage when companies have a certain strength, more based on their own advantages, take growth strategy (SO), to achieve new business development.