China Petroleum Daqing Petrochemical Enterprises In The Integration Of Strategic Research

Petrochemical industry is one of the four pillar industries in China. Daqing region is one the most import petrochemical industrial base. The purpose of the study in this thesis is to improve the core competitiveness through integrating of the enterprises, by optimizing the resources, developing the preponderant products, and so on.The main content of the thesis is divided to three parts: Firstly, the SWOT analysis of Daqing petrochemical enterprises, Secondly, the competitiveness analysis of the major petrochemical industries in Daqing, Finally, the integration strategy to improve the competitiveness.Through SWOT analysis, I think that the leading strategies for the Daqing's enterprises are that:a. To develop the products which consuming a lot of oil in order to utilize the crude resources;b. To develop the products which imported a large proportion to meet domestic demand;c. Depending on the capital advantage, to develop the products which need a large number of fund and has high barrier;d. Cooperating with the foreign investor to produce the products which having a large gap between supply and demand.Ethylene industry and refining industry have analyzed in Daqing. In each industry, the six forces have analyzed: potential new entrants, buyers, suppliers of key inputs, substitute products, availability of complements and rivalry among competing sellers.Ethylene industry: Rivalry among competing sellers and suppliers of key inputs are the two forces to change industry conditions. To decrease the consumption of raw materials and improve the products' performances, increase the capacities of plants are the approach to improve the competitiveness.Refining industry: Rivalry among competing sellers and availability of complements are the two forces to change industry conditions. To increase the capacities of plants and improve the operating rate, to decrease the consumption of raw materials are the approach to improve the competitiveness.From above all, it can be concluded that the measures to integrate the enterprises in Daqing and to improve the competitiveness are: Vertical integrationstrategies in refining and chemical industry, to improve economies of scale, to optimize the ethylene's raw materials and emphasize on the crude oil advantage.