Research On Jiaozuo Coal Group Strategy Transformation

"The12th Five-Year Plan" period is a crucial stage for China’s coal industry tospeed up the structural adjustment, to adapt to transformation of energy production andutilization ways, and to change the mode of development [1]. As is restricted by thenon-renewable nature of coal resources and their limited reserves, and with China’sconstantly enlarged efforts in ecological environment protection and construction,more and more coal enterprises are encountered with how to get rid of excessivedependence on coal resources, and how to solve the bottleneck that restricts thesustainable development through the adjustment of industrial structure and change ineconomic development patterns, which have become the common problems and thekey research direction for coal enterprises to carry out strategic transformation.Jiaozuo Coal (Group) Co., Ltd (hereinafter referred to as Jiaozuo Coal Group),has a long history of115years in mining since it firstly constructed mine in1898. Thegroup has made great contributions to the development of coal industry in Henan andeven China. Nevertheless, behind the remarkable achievement, due to the resourceexhaustion caused by long-term exploitation, and long-term affection by the policy,institutional, structural, technical and conceptual factors of the planned economyperiod, as well as problems left over by history, Jiaozuo Coal Group is faced withmany problems and contradictions in the process of realizing sustainable development.The group finds it hard to sustain resources and development without implementingtransformation. Especially, at the end of the Golden Decade of the coal industry, and inthe background of excess production capacity, imbalanced supply and demand, andsharply decline in overall performance, the group should take the initiative to integrateits transformation and upgrading into Jiaozuo’s overall plan to become an economictransition demonstration city in the central plains economic zone, to speed up thechange in its own ideas, visions and development patterns, to actively adjust and optimize the industrial structure, and to promote strategic transformation, which is aninevitable selection for the group to realize its sustainable development and forge thesecond Golden Decade of Jiaozuo Coal Group.Based on the existing relevant research results at home and abroad, This paperselects statistical analysis, PEST analysis, Porter’s Five Forces Analysis model, SWOTanalysis, Boston matrix and other management tools as the analytical framework, tocarry out in-depth analysis of the urgency and necessity for Jiaozuo Coal Group tocarry out strategic transformation, and objective evaluation of the strategicenvironment the group faces, and current resources and strategic abilities of the group,in order to seek the most effective and economical model of development, realize theoptimal matching of enterprise resources with its capability, and on this basis, thepaper discusses and explores the development direction, target positioning, industrystructure, implementing approaches and safeguard measures in strategictransformation, etc. The study in this paper has certain reference value for the largestate-owned coal enterprises and resource-based enterprises to implement strategictransformation.