ZY’s Rare Earth Resources Development Strategic Research

Since21th， the international economic environment has varied from minute tominute,and the financial crisis has not dissipated,Wth the debt crisis in Europe followingclose on succession,although China has expanded domestic demand and carried out effectivepolicy, the downward trend in the economy and the slowdown in the real is hard to avoid. Sothe adjustment of economic structure and changing the development mode has become themost realistic subject of Chinese enterprises. As a strategic resource, the rare earth is knownas an "industrial MSG", and the scarcity of it has been gradually taken seriously by theindustry all over the world under these circumstances where new materials have been widelyused. The policy has been introduced to limit the exploitation and have the export quota inview of our country once overexploitation and environmental pollution, the low end of itsdeep processing in the industrial chain and the status of a single product. With the furtherspecification of rare earth industry, further enhance of the threshold, and the demandincreasing, it is particularly important for the use of rare earth. Under the impact of the marketenvironment, policy,and great changes,as the resource type company, ZY must soon be clearabout the development strategy, planning the next strategic development to implement thediversified development of enterprise M&A.Based on the analyses of the development situation and the competition pattern of therare earth industry system,this paper takes ZY company as the research object, through thetheory and method of comprehensive use of economics, enterprise management. It uses thecomparative advantage theory and competitive advantage theory to analyse the advantagesand disadvantages of Ganzhou in rare earth industry.The paper Combines the currentsituation of ZY company with M&A financial analysis theory, and makes use of the SovietArea and the western development preferential policies to reach a conclusion that ZYcompany should adopt the way of merging into the rare earth industry, and use theimplementation of science and technology driving to seize the top of the rare earth industrychain.