Sk China Refined Oil Market Strategic Research

SK Corporation is the third largest corporation, meanwhile the largestpetroleum company in Korea. The major businesses of SK are oil refiningindustry and information & communication etc., and there are two companiesof SK listed Fortune top 500. With the rapid development of China economyand petroleum market, SK Corporation wants to bring its excellent oilbusiness to Chinese market, achieving its goal to become an internationalworld scale company through the development in China.This paper is focused on study & analysis of Chinese oil productsmarket, circulation market (including non-fuel business market) and the majorplayers in the market, basing on the theory of market entrance strategy. Thispaper proposes two entrance strategies for SK entering China oil productmarket. The research gives a reference not only for SK Corporation, but alsofor the companies who are also willing to enter into the oil product market.With the development of China economy and automobile industry, theChina oil products market has been in the state of continuous and rapiddevelopment;SINOPEC and CNPC are playing the role of oil market leaderby the advantages of oil resources and distribution networks, and Exxon,Shell, BP are becoming the important market players by strategic cooperationwith SINOPEC and CNPC. Although SK is a late-comer in China oil productsmarket, there are still opportunities for SK to cooperate with SINOPEC onnon- fuel business, or on oil products marketing with Sinochem group, by SK's strengths such as low product cost derived from large scale production andmodernized standard non-fuel business model, using such competitionstrategy of specialization and diversity.This paper discussed oil products and its circulation market of Chinasystematically, analyzed the major market players. In the end, two entrystrategies are proposed to SK on how to enter into China oil products market.The implement scheme is also discussed in detail.