Research On The Corporate Strategy For Y Aluminum Company Ltd

As a very typical resource-intensive industry, aluminum Industry has been facing the challenge both from shortage of resource and environmental protection. For most aluminum history, the dominating factors for the development of aluminum producers are always resource and energy. Due to Global Financial Crisis, global economic growth rate slows down sharply, which consequently causes prostration of the demand for aluminum. Meanwhile, domestic overcapacity situation is getting worse due to local governments’overdependence on GDP, which accordingly causes much tougher competition. To develop Coal-Power-A1industry chain by following the old routine of resource and energy rivalry, or to develop a differential competitive strategy according to one’s own situation and industry traits, aluminum producers are facing with the choice of life and death of the crossroads. A strategy is decisions and actions which decide its performance and achievement in the long run. As a very important part of business executives, strategy management has become a pressing concern in terms of how to generate and implement a company’s strategies to adjust itself to dynamic environment and severe market competition. Based on the current situation and industry movement of China’s aluminum industry as well as Y Aluminum Company Ltd its own situation, by application of the theory of "PEST" analysis and "Five Forces Model", this paper analyzes the external environment of Y Aluminum Company Ltd and discusses its outstanding resources and capability; by application of the theory of "SWOT Analysis", this article also discusses what kind of opportunities and throats Y Aluminum Company Ltd faces and what kind of strengths and weaknesses it has. On the basis of all these analysis, this paper also formulate its own Low-cost competitive strategy and backwards vertical integration growth strategy. Ultimately the paper proposes several detailed measures and methods to ensure this strategy successfully implemented. It has an important guiding significance and practical availability to the development of Y Aluminum Company Ltd.