Studies On Development Strategies Of Chinese Natural Gas Companies

With the reform of energy area in China is getting deeper and deeper, Chinese natural gas industry acquires much attention by the government and public and it also achieves a rapid development. A natural gas Enterprise called A marks out its way along the development path through out a fierce competition in the market. It creates its unique competitive advantages by integrating the midstream and downstream industry chain of natural gas, and developing them through its unremitting effort. Facing with ever-changing external environment, the continuous development of the gas industry as well as increasing competition and other challenges and opportunities, A should re-evaluate and find adapt their own development strategies to further accelerate their business and to ensure their lead position in the industry.This article will use PEST analysis, Five Forces Model, Value Chain analysis, SWOT analysis and Grand Strategy Matrix Analysis to comprehensively evaluate the internal and external environment around A. The article will search for the current advantages and disadvantages of the company and clear its core competitiveness, then to propose A a strategy as an alternative plan for its future development: an overall growth strategy which the main target is to seize the opportunities and to give play to company’s advantages. In order to fully bring its all advantages into play, A should use low-cost-concentrated strategy and Blue Ocean strategy to guide its thinking when open a new business, and continuously improve the strength of resources and the strength of organization to ensure that the strategies can be effectively implemented. This article has the theoretical and practical significance because it provides a specific and operable train of thought about how to customize a development strategy for domestic natural gas companies through the current competitive situation.