Analysis On Business Strategy Of Chengdu S Coal Group Co Ltd

The coal industry takes up an important position in fuel areas as it proves to be a fundamental industry of fuel. In particular, as oil price has been soaring in recent years resulting mass commodity price rise sharply, the significance of China's coal industry undoubtedly becomes overwhelming. The S-Coal & Mineral Group Corporation have always been a key competitive large Mineral and Coal exploiter in Chengdu from 1970s. Meanwhile, its production capacities, drill technology, product and service quality, company profile and tax payment make it leading others rivals in Chengdu where it contributes more to the city's basic flue supply and economic development. However, the S -Coal & Mineral Group Corporation have survived on the running crises in a wake of consecutive safety accident of coal production in years which created a remarkable property losses and death toll due to social burden, unclear equity structure, safety deregulation and prolonging profit loss.This paper analyzes the exterior threat and opportunity of coal industry from discussion of surviving environment of The S -Coal & Mineral Group Corporation in hope that providing useful suggestions of ways to overcome difficulties and development strategic decision. Also, this paper discusses the business strategy of The S -Coal & Mineral Group Corporation from the following aspects.1. Prosperous world economy stimulates a strong fuel consumption hike. The crude oil future price have plunged caused worldwide financial crisis instead of keeping rising since last year, but the outlook of a rising price in a medium-long period still remains. As a substitution of oil, coal price benefits the correlation which presents a positive macro environment for the development of coal industry.2. In the aspect of exterior conditions, this paper applies the PEST analysis method focusing on environments of politics, law, economy, social culture and technology and the theory of potter's competition, that are the threats of operator, competitor, substitute, supplier and buyer to conclude the point that a better growing trend and medium risk of the industry as a whole. Then, this paper seeks out the most opportunity of The S -Coal & Mineral Group Corporation, that are to be based on development of coal and take full advantage of the industry monopoly , meanwhile develop other electricity generator and eliminate coal construction corporation that is of non profit.3. In the aspect of internal analysis, the paper applies methods of The Value Chain and SWOT ways to conclude that the advantages of The S -Coal & Mineral Group Corporation are tax drawback and fiscal subsidy, in addition ,the national debt funds aiming to innovate security technique. Also, security management, regulation and talent, company culture are the disadvantages.4. Applying the SWOT analysis method to decide the SO strategy of The S -Coal & Mineral Group Corporation. To take advantage of country's industry policy and good chance of industry restructuring and adjust security strategy and management by a all round producing system, The S -Coal & Mineral Group Corporation would reach its strategy goal by the complementation of security development, technology innovation, human resource and company culture strategies.