Research On The Competition Development Strategy Of Chinese Petro Company Limited

Oil industry is the funderamental and supporting industry in Chinese economy. After half-century devlopment, 24 oil and natural gas manufacture bases have been established including Daqing, Shengli and Liaohe major oil fields and more then 50 petrochemial manufacture bases are also founded as well. All these have constructed an integrated oil industry system. Petro China Company Limited, short for Petro China, which follows the international criteria and modern enterprise system, was led by the petroleum industry reform of Chinese government in 1998 and internal reconstruction of China National Petroleum Corporation in 1999.In the meanwhile of the reconstruction of Chinese oil industry , international petroleum realm's recomposition was also under their way, which both the scale and monetary amount hit the historical records. For instance, EXXON purchased Mobil by 77.2 billion US$ and BP bought AMOCO by 48 billion US$. Not only has the emergence of those new oil giants changed the pattern of the petroleum industry, but also lifted the degree of the capital convergence and market monopoly in a global sense.However, targeted by the international oil giants, China is a huge country which demand of petroleum is swiftly increasing and the potential of the market is vast. In fact, some major international corporations have already stepped into Chinese oil market in 1980's. Nevertheless those companies could not go deep into Chinese mainland oil market in virtue of highly self-protected policy. While China was adopted by WTO in 2001, retail service of oil product shall be opened within 3 years and whole sale business shall be opened 5 years later as well. On account of the cancellation of petroleum import quota and quantity limitation, the day for the international oil giants marching Chinese market in a large scale is near. The fierce competition between Chinese Petroleum Company and international oil corporation cannot be avoided and it could turn hot gradually. How to improve our competitional ability and form our advantageswithin 3 to 5 years that national interest would be protected has become a strategic question for all Chinese petroleum enterprises to do some relevant research and solve the problem.Being the biggest petroleum enterprise in China and seeking for survive and development in long term, in order to convert itself into a grand petroleum company not only a global advance but also national one-up, PetroChina shall apply the following strategies for a period time in the future:Resource strategy which develops national oil and gas advantages.Industry structure adjustment strategy which exalt the strength of oil refining and petrochemical.Sell strategy of Big market and Immense trade.Internationalized service strategy which actively extend the global business.This report attempts to analyse and study the competition environment of the petroleum industry from the angle of the international and national situation. Focusing on the characteristics, strengthes, weakness and development potential of PetroChina, the author tries to exert the comtemporary economic competition strategic theories to provide some constructional suggestions which could lead to create PetroChina's competitonal advantages and healthy strategic development.