Research On Diversification Strategy Of SCE Company

Since 2012,China’s economic development has gradually entered a new normal.Under the basic economic development shift from high-speed development to high-quality development,the problem of structural overcapacity in China’s coal enterprises and coal chemical enterprises has become increasingly prominent.The development concept of implementing supply-side structural reform,de-capacity,and destocking has become a new development direction for coal enterprises and coal chemical enterprises.At the same time,in the field of coal chemical industry,the state has proposed specific development requirements for the development of a new coal chemical industry.The important role of the coal chemical industry in the national economy has been further highlighted,and the deepening reform of coal chemical enterprises has become increasingly important.As a coal chemical company in the northwest of China,SCE has been engaged in the manufacture and sale of methanol for many years.Under the increasingly frequent development of the production structure of coal chemical industry and the increasingly fierce market competition,SCE has encountered serious bottlenecks in enterprise development due to the influence of its business strategy for many years.Corporate strategy is an important guarantee for sustainable development of enterprises.Appropriate corporate development strategy not only helps the company’s current competitiveness,but also contributes to the realization of corporate development goals.From the specialization strategy to the diversification strategy is the general choice for the manufacturing industry to become bigger and stronger.Based on the analysis of the industry environment and the company’s own environment,SCE believes that SCE has the conditions to implement the relevant diversification strategy.It is also believed that the relevant diversification strategy is the advantage choice that meets the development needs of SCE.The main research contents of this paper are as follows: SCE company is the research object,and the road of transformation and development of its diversification strategy is taken as the research problem.Starting from the current situation of SCE company,the basic situation and development status of SCE company were introduced.The PEST analysis method,the five-force model,the SWOT analysis method and other analytical tools were usedto systematically analyze the external environment,industry environment and enterprise’s own environment faced by SCE.It has drawn the advantages and disadvantages of SCE in implementing the diversification strategy,and the opportunities and threats it faces.Based on the analysis,this paper puts forward the relevant diversified development strategy with strong pertinence in combination with the characteristics of SCE company,and proposes corresponding safeguard measures.Through research,this paper draws the following conclusions: The implementation of product line expansion from methanol to ethanol and ethylene glycol is an inevitable choice for SCE to implement a diversification strategy.Creating a coal chemical technology training business is an important choice for SCE to transform human resources into human capital,and is also the main business supporting the expansion of product lines.Establishing a coal chemical research achievement transformation base is a key step for SCE to combine the Group’s development strategy,give full play to its own advantages,support enterprise technology improvement,reduce business risk and achieve coordinated development.This paper believes that SCE can realize the transformation of the company from a specialized strategy to a diversified strategy by implementing the above diversified development ideas,effectively helping the company to become bigger and stronger.This paper is based on the current development environment of SCE company,so it has certain stage and effectiveness.It is believed that with the continuous change of the development environment of the enterprise,further research can be carried out to realize the dynamic matching of corporate strategy and environment.