Research On The Diversification Strategy Of SDLY Company

The report of the 20 th National Congress of the Communist Party of China proposes to promote green development and promote the harmonious coexistence of man and nature,which demonstrates China’s belief in green development.The new and old kinetic energy conversion strategy put forward by SD Province focuses on key industries such as cement and chemical industry,and speeds up the elimination of inefficient and backward kinetic energy.The state’s emphasis on ecological and environmental protection and the requirement of the transformation of new and old kinetic energy in SD Province have brought challenges to the development of the above key industries.SDLY is a state-owned enterprise with cement and chlor-alkali as its main business and diversified operation.It has been more than 70 years since its inception.At present,there are some problems in the development of SDLY,such as unclear strategic direction,high pressure of "double carbon" task,high production cost and heavy historical burden,among which the unclear strategic direction is a prominent problem.In this context,how to choose a suitable diversified development strategy for SDLY’s current development has become an urgent research topic for SDLY.This paper mainly uses the methods of literature research,questionnaire survey and interview to study the diversification development strategy of SDLY,aiming to help SDLY make the best choice of diversification development strategy and put forward the corresponding implementation measures and safeguards.Through the use of PEST analysis,Porter’s five forces analysis model and other tools for qualitative analysis of its external environment,the key factors of the external environment are obtained,and the evaluation matrix of external factors is constructed.By analyzing the current situation of its diversification strategy,this paper finds out the problems in its diversification development.Through the analysis of internal environment,the key factors of internal environment are obtained,and the evaluation matrix of internal factors is constructed.Then the SWOT analysis matrix is used to compare the strengths,weaknesses,opportunities and threats of SDLY,and three alternatives are obtained.Then using the quantitative analysis of QSPM matrix,the conclusion is drawn that SDLY is most suitable for the centralized and diversified development strategy.This paper puts forward the implementation measures and safeguard measures of SDLY’s centralized and diversified development strategy to promote the implementation of the strategy.On the one hand,this paper can help SDLY to clarify the direction of future diversification strategy;On the other hand,it provides reference for the strategic choice of the same type of companies.