Xd Development Strategy

Nowadays, the strategic control is a widely-accepted truth as well as a fact of war in commerce which innumerable enterprises involve. The so-called strategy is an overall and long-term plan, which the enterprises make for survival and development on the ground of analyzing both the external environment and the internal conditions. In the changeable world market, how to formulate and realize sound enterprise strategies has already become the key to decide whether an enterprise can survive and continue to develop.XD Mining Corporation (XD in short), whose main products are natural rutile and rutile high-ferrotitanium iron, founded as the fast development of titanium industry in recent years, are facing the temptation of various opportunities as well as the difficulties in growing. To determine the development direction and to choose the growth way becomes the focus of decision-makers'discussion, and the strategic management appears especially important and urgent. This article studies XD's developmental strategy, for the purpose of making the situation clearly, for XD at the beginning to avoid the disaster in strategic management which many domestic enterprises have fallen into, to overcome the opportunity development of taking boss as the driving force, and, in the increasing complex environment, to make clear the strategic direction, to insist on the strategic agent and instruction focusing long term, ultimately leading the company to the strategic development road driven by system and culture. The research result is expected to guide the future of the company, practically applying theory to reality, and self-revising, enriching and developing in the practice, and to be of reference value for the same new-emerging enterprises.Based on the massive data retrieval and a thorough investigation of titanium field like XD, study is in the consult materials and the profession, this paper analyses the internal and external environment of XD by PEST, Porter's Five-Force model and optimizing key factors. It indicates that the Chinese economy growth under macro-control is stable and it will continue to provide a proper macroscopic environment for the titanium industry development, and that the policy orientation of resource conservation and a friendly environment will open the market for the application of natural rutile to chlorination titan white.In fact, in the recent couple years, the titanium industry (mainly sponge titanium and titanium oxide powder) developed extremely fast, and the wave of investment is on the rise. It's estimated that in 4 or 5 years, the output of domestic sponge titanium will be 100,000 tons per year, which is as much as 7.69 times in 2005(13,000 tons), and that the output of chlorination titanium oxide powder will be up to 400,000 tons per year, 26.66 times in 2005(15,000 tons). The titanium ore market of natural rutile has been expanding radically, but the rutile low-oxygen high-ferrotitanium iron is still unseen in the domestic market. But from the viewpoint of profession competition, natural rutile is faced with such a terrible threat of replacement by synthetic titanium-rich materials that China has not a 100,000-ton supply enterprise till now. On the other hand, the field competition in rutile high-titanium iron, because of the technical barrier, has not yet formed, and the users have almost no room to bargain.By optimizing key factors and referring to the interior resources and capacity, XD has the unique superiority in the smelting technology of rutile high-ferrotitanium iron and the production cost with its support; the fund is guaranteed, the relationship with government is nice. The disadvantages are that the product quality needs practical examination, the connection between the product and the market is not valid, and the brand image has not been accepted. Anyhow, the competition in the factors above is fairly high.Based on the above research, this article, using SWOT to analyze XD's exterior opportunity and risk and internal superiorities and inferiorities, advances the its basic developmental strategy, namely, making advantage of the favorable macroscopic environment and market, avoiding the rutile substitution risk, industrializing its rutile high-ferrotitanium iron smelting core technology as soon as possible, stressing the development of rutile high-ferrotitanium iron products and their market. Furthermore, strategic localization is carried out by using Porter's Profession Value Chain Theory, XD should be based on its sole technical superiority difference, and establish the strategic localization"being No.1 of rutile high-ferrotitanium iron manufacturer in china and even in the world". Accordingly, XD's strategic target is to build a rutile high-ferrotitanium iron enterprise having its core competitiveness and outstanding enterprise culture, meeting the modern enterprise system standard, scientific management and advanced technology; to set foot on the field of sponge titanium or chlorination titan white through strategic cooperation when opportunity available; to achieve the harmonious development of high-ferrotitanium iron and utile; to create excellence and to keep contributing to the society. In 2010, the high-ferrotitanium iron and the rutile products will reach sales volume of 500 million RMB Yuan and 200 million Yuan respectively.In order to realize the strategic localization and the strategic target, this research, on basis of SWOT analysis and using growth strategy theory, formulates XD's generally taking the growth strategy; using strategic cluster's model and Ansoff Matrix to analyze the strategic choice of high-ferrotitanium iron and rutile growth: product- market strategy for the high-ferrotitanium iron products, enhancing the market penetration and development, and integrated strategy for the rutile products, seeking a strategic union with sponge titanium or chlorination titan white enterprises.This paper, based on Michael Porter's Competitive Strategy Theory and XD's high-ferrotitanium iron and the rutile products'characteristics, has conducted a research on XD's competition strategy, and comes to the conclusion that differential competition strategy is apt to high-ferrotitanium iron products, while low-cost centralization competition strategy to the rutile products. In order to satisfy the need of growth overall and competition strategies, it has analyzed the function strategy which XD should adopt, and has practically determined its technology strategy, channel strategy, brand strategy and management strategy.This article has also constructed the XD strategy implementation safeguard system from five aspects—organizational structure, talent development, product support, system construction and enterprise culture, to guarantee these developmental strategies carried out practically and effectively.