Financial Crisis Ningbo Petrochemical Business Development Strategy

With the effect of the financial crisis, the Petrochemical enterprises in Ningbo are going through a worse time comparing with its high developing rate before. The world oil prices are experiencing higher price volatility. In the last two years, world oil price has been in a high place. At the same time, there are less foreign investments flowing into to Petrochemical enterprises in Ningbo. They also do not keep the pace of innovation in technology and products while petrochemical markets in Su-Hu area are rising abruptly. All those factors are leading to the loss of clients of Petrochemical enterprises in Ningbo, resulting in the compressed profit margins. Petrochemical enterprises in Ningbo are pushed into a corner. As an old industrial base, finding a way out is their pressing priority now.Through the brief overview of the financial crisis, the author brings up the effect of financial crisis on the petrochemical enterprises in Ningbo, indicates severe condition that petrochemical enterprises in Ningbo are facing. To put forward development strategy under the severe condition, the author uses Gray prediction method to predict future operating conditions for petrochemical enterprises in Ningbo, also uses SWOT analysis of marketing theory to analyze the Strength, Weakness, Opportunities and Threats of petrochemical enterprises in Ningbo. The author uses SWOT Matrix to get the strategies of SO, WO, ST, WT. Through those strategies, the author concludes the developing strategy of petrochemical enterprises in Ningbo as follows:integration of refining&chemical industry, talent strategy, scientific innovative strategy, flattening digitalized management strategy, marketing strategy, differential strategy and environmental protection strategy. The author hopes those strategies will be helpful for the development of Petrochemical enterprises in Ningbo.