Research On Forward Integration Strategy Of Q Company

In recent years,there is intense contradiction between high developed economy and the requirements of environmental protection in China.To find a balance between them is difficult to the reform of energy.China is a vast country which has rich mineral resources.However,because of the large population base,per capita hold of resources in China is less than the world average level.Natural gas is high-quality,clean,safe and economical compared with other energy.It is widely used in urban gas industry,chemical industry,automobile fuel industry and power industry.High utilization of natural gas has a positive effect on economic construction,social development and environmental protection.This situation conforms with the development and utilization policy of energy.With the increase of domestic production and international imports of natural gas in China,the building of pipeline and infrastructure about natural gas is accelerated.Natural gas has been widely used in every field of life and production.It provides good opportunities for the related companies.Q company offers the transport services of natural gas by pipeline between upstream and downstream.Q company has built a stable relationship with downstream customers in 5 years.At present,the price of liquefied natural gas is lower than pipeline gas in Guangxi.The powerful ability to Capture the market share of liquefied natural gas and fierce market competition give rise to huge pressure for Q company.In this thesis,the author studies the development strategy of Q company by applying the integration theory and research result of development strategy in the field of natural gas industry.The author analyzes the internal and external environment of Q company by means of the analytical tools,including PESTEL analysis,Porter's five forces analysis and SWOT analysis.After this process,the author comes up with the view that Q company can adopt the forward integration strategy to improve its profitability and competitiveness and extend industry chain.In order to ensure the successful implementation of the strategy,Q company should develop effective implementing measures and control measures during the process.This thesis puts forward the feasibility and necessity of implementing the forward integration strategy for the natural gas companies which offer the transport services by pipeline.On the basis of methods of theory and practice,this thesis enriches the vertical integration strategy theoretical system.This thesis has profound guiding significance and referential value for Q company and other companies.It also has pactical significance to the sustainable development of natural gas industry in China.