A Study On Backward Integration Strategy Of Shaanxi Ocean Nonferrous Resources Co., LTD

Along with our country’s rapid economic development, we demand for raw materials greatly increased. Crude oil, coal and iron ore and mineral resources has become us demand the most important commodity. Because these resources in the global distribution of equilibrium, a lot of our materials need to be imported from other countries, like this form to the international commodity dependence on imports. As a trade enterprise, we cannot get the more profit from traditional trade pattern. Business will be atrophic with the pricing of ore lost. In this situation, How to use its own advantage gradually adjust enterprise strategy, expanding the business to industrial chain upstream and downstream, be the suppliers and customers, cooperating with the partners closely, taking in the industrial chain with financial instruments and bring a large profit. The Shaanxi Ocean Nonferrous Resources Co., LTD has faced the strategy adjust. It is also the main direction of research in this paper.In this paper, the Shaanxi Ocean Nonferrous Resources is as the research target, analysis the business of industrial chain reference for development, reference for the development of foreign capital company experience, in combination with the company in the industry development, analysis the industry environment with "Michael Porter’s Five Forces Model" and external competition environment with "SWOT". From the structure, human resources, financial instruments, channel construction, analyze the company’s overall internal environment. Through the whole industry chain of external environment and internal company whole environment analysis, clear considered the internal and external environment, analyze the company the opportunity of the company, the danger and the advantages and disadvantages, and then for the sustainable development of the company to make the adjustment on the goals and plans, detailed in eight chapters, among which chapter1is the background, significance, the object of study, the method and the basic thought, frame structure; chapter2bring the backward integration strategy theory and research is discussed; chapter3review Shaanxi Ocean Nonferrous Resources situation; chapter4analyzes the internal and external environment of Shaanxi Ocean Nonferrous Resources, and clear the advantages and disadvantages, opportunities and threats; chapter5work out the backward integration strategy; chapter6clear the point of the development; chapter7evaluate and dynamic adjust the backward integration strategy in processing; chapter8provides the conclusion.The research will direct company’s the development and strategy, which will improve enterprise’s profit level by the advantage of the backward integration strategy. The research method will be used for the reference for making developing strategy and enforcement for the other companies.