Baotou Rare Earth Industry Development Strategy

This paper researches the development strategy of Baotou Rare Earth Industry in accordance with its actual situation. In the paper, the theory of Enterprise Group & Enterprise Strategy Management is applied to analyze the status and existic issues of Baotou Rare Earth Industry in detail, as well as reveal several issues, such as the irrational products structure, the shortage of fund, the poor capacity of technical innovation, and the under exploitation of rare earth resources.After analysing the macro-politics and macro-economy environments faced by BAOTOU Rare Earth Industry, adopting the enterprise strategy analyzing method, it is deduced that the favorable conditions in politics and economy can be offered by Baotou Rare Earth Industry besides the superiority in natural resources and technique, although there also exists the weak centrality, the threat of fierce competition, the shortage of fund, the lack of longitudinal integration and the low market share.In view of the facts mentioned above, the strategic objective of BAOTOU Rare Earth Industry is put forward, which will take the full advantage of the regional rare earth resources, continuously improve the technical innovation and expedite the market exploitation. Moreover, the industrial centrality will be strong then and the scope of business will be extended so that Baotou Rare Earth Industry become an enterprise group in the near future, which will process independent property in knowledge, outstanding products and powerful influence in the world by means of enterprises merger, state-owned shares reduction, and so on. The development strategy includes the following steps:Firstly, the enterprise integration will be brought into effect in the short-term plan. With superior products as main ones and assets as the band to set up the northern enterprise group, the leap from resources superiority to economic superiority will be realized.Secondly, the further integration and the various operating strategy will be followed in the middle-term or long-term plan in order to consolidate the superiority of rare earth products in the traditional industry, and make the high value-added products rank among the leading position in the international market.Finally, the measures for developing Baotou Rare Earth Industry are proposed, by which the strategic objective of Baotou Rare Earth Industry will be carried out by system reform, technical innovation, capital operation, and enterprise civilization, and so forth.