Research Of Business Model Innovation Of Civil Explosive Industry In Chongqing

Civil explosive industry is one of the main industries in Chinese economic development, honored as Resource of Energy Industry, Basis of Basic Industry. Because of the blasting property of civil explosive materials, the government always imposes strict monitoring on them. From production, sales, storage, transportation to use, every link should be checked and approved by administrative sectors. As a result, the degree of concentration on the market is low. In recent years, with the speed-up proves of marketization of Chinese economy, government publishes a series of policies to promote domestic industries, among which civil explosive industry is in face of a period to transform and upgrade business model.The thesis introduces the background of the topic, purpose and significance of the study, the characteristics of civil explosive industry, evolution of the changes of administrative permission, methods of monitoring, existing problems, background of the establishment of Chongqing Guanglian Civil Explosive Equipment Co., Ltd., operational effects and the company’s deficiencies. The paper points out that the current business mode in Chongqing Guanglian Civil Explosive Equipment Co., Ltd. fails to reach the information integration and realize information sharing. Besides, it does not adapt to the requirements of the industrial development trend. The major problems include asymmetric supply-demand information, singular procurement channel in the user company, long administrative check and approval cycle, high safety and monitoring cost and so on. Based on combining three research methods, the paper applies relevant theories and raises the innovative business mode for Chongqing Guanglian Company. Through integrating the related information in the production enterprise, sales enterprise and user company, information sharing is achieved. The paper proposes to re-establish the business process in Chongqing Guanglian Civil Explosive Equipment Co., Ltd. It can take advantage of the uniqueness of IP address and the Internet to apply for handling "Purchasing License" and "Transportation License" related to civil explosive materials on line, thus locking the responsibility of safety management of civil explosive materials rapidly and conveniently and improving efficiency of procurement and sales. The new business mode not only adapts to the current procurement and sales of civil explosive materials, but also satisfies the needs of integration development trend of "production, sales and handling", which gives a way to solve how to combine business with government so as to achieve mutual benefit under present domestic supervision to civil explosive industry.