Strategic Research Development Of Shaanxi Ecological Cement Corporation

Cement industry, an important basic raw materials industry for economic and social development, plays an irreplaceable role in the national economy in term of basic construction,industrial construction and other related infrastructure fields.Since 2012, the decline of national macroeconomic, on one hand, has decreased economic growth rate, and thus there is a serious excessive capacity on cement industry. On the other hand, energy consumption of this industry retains high and it leads to serious environmental pollution.Both of these cause an overall industry downturn. Shaanxi Ecological cement Corporation Limited tends to be passive in fierce market competition. It faces a list of tremendous tasks: design the development strategy, respond actively to the fierce competition pattern, reverse the decline of unfavorable performance situation, and promise the long-term development.This paper focuses on Shaanxi Ecological Cement Corporation Limited as research object. Based on PSET and Michael Potter's Five Forces Model, the author uses industrial organization theory and strategic management theories to study its development strategy. First the author analyzes the problems facing domestic cement industry, reveals the presence of severe over production capacity, serious competition of the homogenization and relatively raw growth mode.By analyzing the company's advantages and disadvantages, opportunities as well as threats, the paper concludes that the corporation should develop large scale production lines while closing down those smaller ones. Meanwhile, the Corporation should takes on the strategy that consolidates the present market shares and extends to new emerging markets in Guanzhong-Tianshui Economic Zone and Northern Shaanxi. The author works out a framework strategy that corporation should eliminate backward production capacity, develop large cement drying process, promote vigorously development of circular economy and extend industrial chain. The author also discusses several operating strategies, such as,upgrade management performance, increase capital operation, optimize human resources,strengthen marketing, consolidate risk management and promote cultural construction.