Research On The Development Strategy For SINO GEOPHYSICAL CO.,LTD

The GDP of China has been the second higher of 1015986 billion yuan all over the world in 2020.At the same time,the total output of the secondary industry of China has reached 384255 billion yuan,which has been the champion for years.However,the total crude oil imported by China has surged to a higher level of542.386 million tons,which means an increase of 36.71 million tons or 7.3% on a month on month basis.In the same period,China’s domestic crude oil production was only 194.92 million tons,less than half of the total imports.According to the accounting results,China’s crude oil self-sufficiency rate was 27.56%,which means an external dependence at a fragile level of higher than 70%.To cope with this condition of highly dependent on foreign oil as well as the deteriorating China-America relation,the Chinese government issued a series of support policies for private enterprises to step into the industry of crude oil production,which can effectively stimulate market vitality,increase the exploration and exploitation efforts of the oil and gas industry,steadily increase China’s crude oil production,effectively alleviate the current situation of China’s high dependence on imports of crude oil,so as to support the economy development of China under the new normal to benefit the transformation and upgrading of economic structure once effective.At present,it is in the policy window period for private enterprises to participate in the industry of oil and gas production,and SINO GEOPHYSICAL CO.,LTD,a private oil and gas service company which has a less operating revenue than 1 billion per year,is the beneficiary of this policy.This paper studies the development strategy of this company,with the purpose of improving its development strategy,solving the path and direction of the company’s development,so as to make it develop in the certain way towards the current industry situation and maintain a sustainable development.Through the literature research and case analysis,based on the relevant strategic management theory,this paper takes the company as the research object,integrates its policy change,industry structure,company status,comprehensively analyzes its internal environment such as company resources and capacity,external macro environment like politics,economy,society and technology,and industry environment which contains the bargaining ability of upstream and downstream,competitors,substitutes and the newer by using Porter’s five forces model,PEST model and SWOT analysis,so that we obtain the advantages,disadvantages,opportunities and threats of SINO,after which we can formulate the SWOT analysis strategic matrix;Combined with the theory of industrial cycle and the current situation of the company,the strategic objectives that the company should adopt are obtained.After the comprehensive analysis of the company’s strategic objectives and SWOT strategy matrix,we choose the WO strategy as the company-level strategy,and we can also take the differentiation strategy and cost leading strategy as the company’s main technical service and oil production business’ s business-level strategy.After this step,the overall and stage strategic planning of the company can be formulated,and the implementation approaches of the function-level strategy just like marketing,human resources,finance,production,R＆D are established too.Then we can make the strategic guarantee measures in the aspects of organization,system and culture.SINO GEOPHYSICAL CO.,LTD,as a typical private enterprise who entering the oil and gas production industry under the policy exposure,has already faced the problem that its own capabilities do not match its business development.It can be sure that this problem can also bother the most private enterprises who have a same intention as SINO.This paper gives a relatively systematic development strategy for the specific situation of the company,and we believe that it can help to make a further developing to SINO,and we sincerely hope that this paper can also be useful to any entrepreneur who are interested in the ascending trend of crude oil production industry.