Study On Vertical Integration Strategy Of Blue Sky Gas Company

In recent years, the problem of environmental pollution has been widespread concern. The focus of China’s energy strategy has been adjusted on improving theenergy structure and developing the clean energy. Natural gas is a kind of clean, high quality ecological energy, and also a kind of economic efficiency chemical raw materials. It has been home and abroad agreed. Natural gas will occupy an increasingly high proportion in the energy consumption structure of China and the world. This bring a new opportunity in the development of the natural gas industry. With the introduction of national support policies, China’s natural gas proven reserves increase gradually and the pipe network construction is accelerating gradually. The natural gas industry has been in a rapid development situation.In this context, the natural gas pipeline industry a huge development potential, meets both opportunities and challenges. How to grasp the opportunity to deal with the complex and ever-changing external environment, how to remain invincible in the increasingly fierce competition in the market and seek greater development, each pipeline company have to consider this problem.The Blue Sky Gas company is engaged in the natural gas pipeline industry in the region of East China. The upstream gas supply for the company is not sufficient and the industrial chain is relatively single. The company is also facing the threat of new competitors. Based on the research of the company, according to the present situation, from the point of view of sustainable development and promoting the company’s vision, the paper put forward the development strategy of vertical integration. A full of investigation has been carried out and It the basic principles of strategic management has been discussed. This paper used many kinds of analysis methods. The external and internal environment, the advantages and disadvantages of the company have been analyzed. This paper put forward the direction, the goal and the approach of vertical integration strategy. It pointed out that the company should expand to forward and backward of the industrial chain respectively. It drew up the forward integration strategy based on acquisition and the backward integration strategy based on alliance. This paper also presented the specific measures to ensure the implementation of the strategy.The research of this paper has a more practical significance for the Blue Sky Gas company, which is in the middle of the industry chain and facing competitive challenges. It also has certain reference significance for other similar pipeline companies to find ways for development. At the same time, this paper will also play a certain reference role for the reform and development of China’s natural gas industry.