Study On Diversification Strategy Of Transformational Development Of YM Group Company

Since2012, China’s economic development has gradually shiftedto the new normal. The main feature is that its economic grows with middleand high speed, with the annual GDP remaining at about7%.Affected by themacroeconomic transformation, most coal enterprises in our country has gotinto a difficult situation, where the survival space is compressed, economy isslowing down, the storage of coal is high. Thus, further development of thecoal industry is facing enormous challenges. As one of the provinces with thelargest coal resources in our country, Shanxi Province has proposed the overallidea—“diversified development based on the coal”, and hopes that after20to30years’ efforts, a new, properly-structured, pluralistic and competitivemodern industrial system. YM Group is one of the key state-owned groupcompanies in Shanxi Province, and its main business includes coal production,coal processing, and coal sales, together with the development of chemicalindustry, electric power, aluminum and other auxiliary industries. Facing thechanges and challenges of the external environment, its presentdevelopment mode, which leads to high energy consumption and highpollution, is not suitable for the future. Therefore, transformation has become an inevitable choice of YM Group Company.This paper takes YM Group as the research object, and focuses on itsdiversification transformation development strategy. Based on its currentdevelopment, I analyze and estimate its strategy environment and its internalenvironment, identifying its opportunities threats and clarifing the advantagesand disadvantages of the company. Based on the analysis, I establish thedevelopment strategy suitable for YM Group, and put forward the safeguardmeasures. This paper brings forth new ideas in terms of YM Group’senvironment analysis and the design of its strategy goal.Through this study, we draw the conclusion that establishing the circulareconomy mode is the inevitable choice for YM Group to meet thetransformation development trend of enterprises, the collaborative developmentof coal, coal chemistry and coal and electricity industry is the main direction forYM Group, and the promotion of the reform of the enterprise system andmechanism is an effective way to ensure the successful realization of thediversification strategy of YM Group.The research is based on the current strategy environment of YM Group,and is periodical and timely. In the future, with the changes of the environment,further studies can be done to establish a dynamic match between YM Group’sstrategy and environment.