Research On The Diversified Development Strategy Of LA Co., Ltd

The coal industry is a high-risk, high-investment industry, having a high sensitivity to national policy. At the same time, the coal industry strangles our economic lifeline and promotes the development of other industries greatly. Therefore, its development obtains our government’s concern and attention. The coal as a non-renewable resources, is the main raw material of coal enterprises. Due to extensive mining, the coal resource consumption enables enterprises are facing increasingly serious problem of resource shortage, at the same time, under the environment of global economic downturn and oil price shock, the surge in environmental awareness, new energy research making a great progress, the coal business stagnated enter bottleneck, so more and more industries seek the enterprise development strategy actively. Under the current environment, many large coal companies choose diversification strategy. If the diversification can be successful or not lies in the effective use of their core competence. Therefore, choose their own development diversification strategy has become very important.LA is a coal industry, in recent years, although the coal business implements international operations successfully, struggles with the coal-related businesses, having seriously affected the company’s development. Therefore, this paper takes the LA as the research object, having a research on the strategy selection of LA using diversification strategy theory to improve the company’s competitiveness and achieve sustained and stable development, meanwhile, in this new situation, also has a certain significance for the development of other coal companies.Firstly, the paper bases on the overall profile and operation of LA, analyzing the problems of development. Then, according to the LA own actual situation, combines with LA external environment and internal conditions, applies the SWOT analysis method getting the strengths and weaknesses, opportunities and threats, structures matrix to analyze the advantages of different strategies, to provide ideas of diversification strategy selection. Finally, the paper elaborates the LA’s selection of diversification strategy from the principles of diversification, path selection, target, layout and diversified industrial structure, putting forward diversification strategy implementation and safeguards of LA.The paper suggests that the LA should be based on the internal and external development, and actively implements diversified development strategy to achieve sustainable development, while actively developing coal industries also developing electricity, polysilicon, coal oil and coal chemical industry, gradually form the pattern of "a core industry, two pillars of the industry and support industries such as electrical manufacturing, machinery, fertilizer, high-tech industry association of coal-based industry cluster".