Study For Fostering JF Mining Company’s Sustainable Competitive Advantages

Mining industry is highly dependent on the depletion of natural resources. With the development of global industrialization and economic globalization, mining companies faced growth opportunities from the rising demands on mineral products and the developments on technology, but also faced the threats caused by monopolistic competition in the industry, limited and insufficient supply on mineral reserves and resources, increasing safety and environmental restrictions, severe environment, cost pressures and other challenges. How to take advantage of market opportunities, ensure survival and long-term growth, need companies in mining industry to re-examine their competition status under the changing environment, and starting from that to cultivate and innovate sustainable competitive advantage, to prepare to win the competition in the future.This paper systematically reviewed and analyzed the theory on competitive advantage and takes JF Mining Company as the study object, mainly used the PLETSC model, five forces model, mining industry characteristics, industry key success factors, SWOT analysis, value chain analysis, benchmarking analysis and other methods to assess the advantages/disadvantages of JF company from all aspects-both the external competition environment and the internal resources, capabilities and competencies. Then pointed out that the growth opportunities and threats, the competitive advantages JF has had (including the excellent management and technical applications skills, good at integration of resources and the effective cost management capability, good corporate governance mechanism to maintain transparency and flexibilities, good social responsibility image and has the advantage of first mover and located in a good mineralized areas, etc.), and JF’s disadvantages on insufficient mineral resources and reserves, lack of long-term strategy planning, etc.; based on above specific industry and company analysis, and combined with the theory of enterprises competitive advantage based on resources, core competency, dynamic capacity, knowledge integration management, stakeholder management and other point of view, this paper suggest JF mining can cultivate/foster it’s sustainable competitive advantages by ways of:to increase mineral resource and reserves; enhancing the management on strategy planning/hummer resource management/innovation/strategic alliance building, continuous improvement on cost management and stakeholder interest management; In the end, the paper put forward necessary measurements on organizational restructuring, HR support, company culture and system rebuilding, financial and information support to implement above programs suggested.This study shows that the efforts of mining companies to foster/cultivate sustainable competitive advantage should be based on their present resources and capabilities but must be in future-oriented. Possession of mineral resources is the premise of the survival and development of mining companies; mining technology research and development and absorption of application ability is the basis of the mining companies to keep costs low; the use of global resources to achieve complementarily of strategic resources and capabilities in the value chain can effectively improve the efficiency of resource allocation in order to achieve cost optimization; corporate social responsibility performance and stakeholder management capabilities have a significant impact on subsequent access to resources. I hope this mining company’s case study on how to cultivate sustainable competitive advantage based on a preliminary reflection and exploration can provide insight and reference value to the company’s future development and it is useful to help other companies in different industries building/reinforcing sustainable competitive advantages.