Study On Competitive Strategy Of A Mining Co.,Ltd

With the development of economic globalization and China’s export-oriented positively, market environment of Chinese enterprises face more and more uncertainty and full of turmoil. Strategy management is the planning of development goals for the future based on the business environment and their own conditions, which has certain guiding significance for the growth of enterprises and development direction. The choice of competition strategy is a part of enterprise strategy management system, with the increasing complexity of market environment, the positive significance of competition strategy for improving the ability of competition, to gain long-term competitive advantage gradually recognized by the people. A mining Co.,Ltd is one of the large listing Corporation includes mine selection, smelting and mining, was founded in2000January, its business scope covers the gold geological prospecting, mining, metallurgy, nonferrous metals, precious metals, gold jewelry purification, processing, production, sales, gold mine equipment and supplies, building materials production, sales and other content, and has relatively complete industrial chain of development. In recent years, A company is committed to build the domestic gold smelting "aircraft carrier", through mergers, acquisitions, integration of resources and other means, it has had numerous mineral rights in Yantai, Qingdao, Inner Mongolia, Gansu, Fujian and other places, the gold reserves has achieved a substantial growth; it has built China’s first million ton ore size plant selection and the largest modern gold comprehensive recycling, its smelting capacity has been doubled and the enterprise production has been in the rapid expansion.In this context, this paper takes A mining company as the object of study, in the summary of the strategy management theory and based on literature review, then the author studied the implementation and selection of competition strategy. First of all, after a comprehensive analysis through PEST analysis and five forces model of competition for A mineral company’s external environment, then the author obtains opportunities A company has are as follows: stable political environment; China’s economic environment is superior; the products of the company are consumer preference; consumption capability of resident is improved; maturity of technology environment; smaller potential entrants threat; lesser substitute threat; weak supplier bargain power. Threats exist in the external environment are:restrictive policies affect capacity; environmental protection policy is tightened; the rise of labor price increases the operation cost; the product price is largely influenced by the international market impact.Secondly, this paper makes an objective evaluation of resources and capabilities of A mineral company, then compared with other enterprises in the same industry, the author finds A mineral company has the following advantages:financial resources superiority; rich mine resources; rich knowledge resources; strong profitability and operation ability; strong development ability. Disadvantages include:organizational structure design is not reasonable; the enterprise culture construction should be strengthened; professional technology staff ratio is low; the lack of high educated employee, innovation ability needs to be improved. Then, through QSPM matrix makes analysis of A mineral company’s competitive strategy, and finds it should choose differentiate competitive strategy based on cost leading, and the way of its realization are explored,:establish regulated internal control mechanisms, reduce the total cost of operation of the company; strengthen administrative management regulations, realize low management cost; perform social responsibility, realize enterprise image differentiation; strengthening technological innovation, realize the production process differentiation; strengthen marketing innovation, realize the marketing mode differentiation. And on this basis, then the author put forward the optimization of the organizational structure, enrich enterprise culture, strengthening information construction, improving the financial management capacity and improving human resources management and other measures to protect the A mineral company to implement the differentiate competition strategy based on cost leading.This paper combines theory with practice, using strategy analysis tools analyzed A mineral company competition strategy, the conclusion of the study has positive significance to enhance company competition ability, to expand market share, and then improve the A mining company.