The Research Of Development Strategy Of Coal Chemcial Business For Company S

Company S is a global energy and chemical company.One of Company’s key businesses in China is the coal gasification business.Coal chemical business of Company S entered China market more than 15 years ago.There’re ups and downs with the similar pace of China’s coal chemical market’s development.China Coal Chemical Industry has been in fast development during the “Eleventh Five Year Plan” and “Twelfth Five Year Plan”.Many coal chemical projects have been set up and put into operation,such as coal to methanol,coal to ammonia,coal to olefin,coal to SNG and coal to liquid projects.With the trend of stricter environment protection policies,coal chemical industry is also transforming from single type and wild operated to the direction of integrated,high efficient and environment friendly.During this transition process,Company S is facing fierce competition but also will have more chances.This company’s coal chemical business development should adapt to meet the national policy,market trend and set corresponding development strategy.This company’s coal gasification business should be prepared for large-scale coal processing projects and high energy efficient green coal chemical projects with the purpose to develop and conquer China coal chemical market.This article firstly analyzed the current situation of modern coal chemical industry,and applied strategic management theory,PEST model and Boet’s Five Forces model to analyze the external environment and competition situation.The company’s own status was also discussed to describe the challenge it met and the root cause of the challenge.This article used SWOT model to analyze the advantages and disadvantages.The advantages of company S coal gasification business is the high energy efficiency,low consumption of energy,clean and environment friendly,reliable and widely applied.In addition,Company S owns its own coal chemical plant,R&D center and technical service center.The disadvantages of company S coal gasification business are the relative high CAPEX for a new project and simple business model.Then the article analyzed the current and future opportunities and challenges in view of the market situation,and made the SWOT matrix for the coal chemical business development for Company S.On basis of the SWOT matrix,the author proposed the “pyramid model” of coal chemical business development strategy for Company S as technology advance strategy,localization strategy,and cooperation strategy,which means respectively as closely follow the environmental protection policy,adopt the technology development strategy as keep the advance of its coal chemical advantages,focus on core business,continue to identify strategic partners,The measures of implement the development strategy are also discussed.It can be concluded based on the article that Company S faces the challenge of keeping a leading position in China Coal Chemical Industry.The strength of Company S should be utilized and weakness should be enhanced.It’s important for Company S to set up and implement the development strategy for healthy development in China Coal Chemical Industry.