Yangzi Petrochemical Business Development Strategy Research

In the last years of 20th century, many petrochemical multinationals have launched a wave of merger, alliance and reorganization to change the global petrochemical industry, and this will make the world petrochemical capital more concentrated and monopolized. After China enters the WTO, tight policy of protecting domestic petrochemical industry will vanish, which will provide international major petrochemical firms with a good chance to march into Chinese market. Therefore, this situation will compel the home petrochemical enterprises to fight with global big petrochemical companies in various aspects for Chinese market.For historical reason, such as system, technology, management and salesmanship, Yangzi Petrochemical Corporation (YPC), a whole-owned subsidiary of SINOPEC will be pounded within a long period because there is a big gap in the competitiveness between YPC and global big petrochemical corporations. Consequently, it's very important for YPC to make suitable developing strategy in 21st century.Through the analysis for the status and developing trends of petrochemical industry and trait of YPC, the SWOTs faced by YPC are introduced, then this paper puts forth the running and developing strategies of YPC. Low-cost strategy is made for obtaining basic advantages on the competition with multinationals; integration strategy is implemented for doing downstream business steadily and enhancing economic strength on the basis of expansion of the operation areas and adjustment of the product structure.