Research On The Development Strategy Of Y Company Under The Background Of Salt Industry Reform

Marketization reform of China’s salt industry system has broken the original monopoly system.Market competition is increasingly fierce.The "price war" is obvious.It has a significant impact on the regional administrative monopoly of salt industry company.The monopoly profits of salt industry will gradually disappear.Y company is no exception.Affected by salt industry reform,the market share of Y company is gradually decreasing.Salt products prices and profitability declined significantly.The company’s strategic development goals have not yet been realized.Faced with excess capacity and oversupply in salt industry,and a large number of salt enterprises and the rapid development of the Internet,Y company should seriously study many problems within the company and carry out corresponding strategic adjustment in time in order to adapt to the increasingly fierce market competition and further improve the market share of the company.The key points of this research include:First,using PEST analysis method,comparative analysis method,Porter’s five-force model analysis and related economic theory,the external environment of Y company is analyzed in detail.The analysis shows that China’s salt industry is in a state of small,scattered,chaotic and many,with excess capacity,low labor productivity,great influence from the downstream industries,insufficient international competitiveness,reduced bargaining power of suppliers,and gradually improved bargaining power of customers.Competition among existing competitors is more intense.Second,the financial statements,profit sensitivity,main business,core competitiveness and marketing status of Y company are analyzed by means of financial analysis and sensitivity analysis.The analysis shows that,influenced by the salt reform,the sales price and profit of Y company have dropped sharply year on year,the risk of bad debts has increased,the marketing work has not been paid attention to,the marketing strength is not enough,and the brand influence has not been formed.Third,on the basis of the research of Y company’s current development strategy,this research puts forward a more suitable development strategy,including: integration strategy,market development strategy,cost leadership strategy and differentiation strategy.Fourth,in order to ensure the landing of the development strategy,this paper puts forward some specific strategic implementation paths,such as merger and acquisition,industry benchmarking,cost reduction and efficiency enhancement,brand remodeling,marketing promotion,performance appraisal and so on.