Research Concerning The Development Strategy Of Sichuan Chemical Company Limited

Sichuan Chemical Company Limited (SCC)is a company that predominantly produces agricultural fertilities such as urea and ammonium nitrate. While at the same time it also produces chemical products as melamine, sulfuric acid for industry and hydrogen peroxide. It is one of our nation's biggest production bases for fertilizer and melamine. Chemical industry of natural gas, the leading trade of the company, is a resource-intensive one and restricted by resources. The long-term strategy of the company is to focus on natural gas resources, rely on the main trade of urea, exercise vertical integration strategy, extend industry chain and expand. After its foundation and issuing stocks, the company has realized some profits. Nevertheless, in recent years, the market sales and profit growth are not desirable. Therefore, to the company it becomes the prime concern how to ensure the company's long and stable development.The thesis is trying to study two strategical issue of SCC. One is strategical orientation of present business combination; the other is the corporation's future development direction.Based on the point of view that the corporation's competition advantage comes form its place in industrial structure and its internal resources and abilities, the article firstly analyses corporation's external macro-environment and its industrial structure, then surveys the present status of the corporation's internalresources and abilities; the article concludes that the supply of main raw materials and relating technical resources are major constraints against the development of the corporation. Taking the general strategy into consideration, the article analyses and chooses the strategical orientation of present business combination as well as the corporation's future development direction. On the other hand, the article tries to make main business strategy for the corporation.The article comes to a conclusion that the future development strategy should endeavor to finish the strategical transfer, step by sep, from integration to diversity and multi-geographic, on the basis of strengthening urea business, developing melamine business and accordingly adjusting other business. Focusing on the acquirement and exploitation of the two major constraining resources, the article concludes that, geographically, main development policy should transit form locality to multi-domain; as for product types, from the resources integration to technology integration; from self-accumulation and self-independence, as the development mode, to obtaining various external resources. Also, in order to insure the successful strategical transition, the corporation should concentrate on the acquirement and exploitation of resources together with cultivation and renewal of abilities.