Research On Competitive Strategy Of Z Company’s Alumina Business

Established in 2001, Company Z, as the leader of Aluminum industry has performed astonishingly. Its net annual profit has once reached tens of billions. As a state-owned company( "SOE"), Company Z has made great contribution to the restructure of Aluminum industry, brought tremendous return to the country and investors, and granted its employees great sense of honor. However, ever since the financial crisis of 2008, its performance has deteriorated year by year. It has created three new loss record of SOE history in seven consecutive years. The predicted loss of 16.3billions for the year 2014 brought great attention of authority and investors, and put the company at the center of a storm again. Facing the risk of ownership reform as a pilot program, the company is at a point of survival or death. There are many reasons contribute to the current status of the company, such as unfavorable macroeconomic environment, increasing competition after China joining the WTO, industry restructuring of the whole country, and management defects of the company itself.The author concludes, by a thorough analysis of the defects in the company’s strategy and management method, that wrong company development strategy is the major reason for the current failure of the company. Based on this conclusion, and by employing advanced strategy theory both at home and abroad, the author tries to come up with a new set of strategic planning system, which includes general strategy, competition strategy and strategy of functioning level. The purpose of this system is to help the company make profit in the short term, and grow into the world’s leading mineral company in the long term. Besides, the author tries to find out a direction for SOE reform, by analyzing the strategy and approaches of company Z’s restructuring and reform.