Study On The Development Strategy Of Refined Oil Distribution Business Of ZY Transportation Company Limited

The oil transportation industry has occupied a major position in China’s energy system.It was used to be much more concentrated,being controlled by a few monopolists in the past.Nowadays,the industry has been experience dramatical development and restructure as a result of successful implementation of the government’s reform plan on state-owned enterprises.Monopolists are facing severe challenges from their rivals.As petroleum transportation monopolists have been keeping their culture and belief of “too big to fail” for a very long time,ZY Transportation Co.,Ltd.(hereinafter referred to as “transportation company”),which has a long history of relying on Chinese government’s support and lack of innovation on its management,has put itself in an extreme tough situation under such efficient market.Refined oil distribution has been a major business segment of the transportation company.How to adjust its massive management system and shift company culture to better adapt to current petroleum transportation market? How to deploy and implement resource integration meanwhile retaining existing advantages strategically and ensure the transportation company’s leading position in the industry?How to reinforce core competitiveness of its refined oil distribution business and generating more profits for the company as a result of corporate strategy adjustment ?These questions will be explored and discussed in this article.The author will illustrate her perspectives on practical strategies and policies for refined oil distribution business based on her professional experience and current industry situation.The article has applied typical strategic analysis tools such as PEST analysis,Porter’s Five model,SWOT analysis to study the internal and external factors that affect the transportation company’s refined oil distribution business.Also,This article has discussed and analyzed the company’s management shortage,company culture and vision.Issues caused by external factors,and corresponding solutions have been taken into consideration as well.Eventually the author predicted the future development direction of the refined oil distribution business and advised applicable strategies.Through the article,readers are expected to gain a better understanding of current management status of the company and future development of the transportation company.Based on the company’s "16366" development strategy,the author formulates the strategic objectives of the refined oil distribution business andfuture development strategy,and proposed the methods of deployment and implementation of the advised strategies.The main purpose of the strategies would be to sufficiently integrate existing resources,implement logistics alliance,improve customer service,shifting operating mechanism,with the focus on talent retaining and more innovative and dynamic corporate culture.