The Research On Developing Strategy Of COSCO Petroleum Pte Ltd

China Ocean Shipping Group( hereinafter referred to as COSCO or COSCO Group) is the industry leader in China’s shipping industry, also the strategic enterprises during China’s fundamental industry, as well as one of the top Fortune 500 companies in the world, which has significant influence on the national economy. The shipping department is COSCO Group’s core business, however, due to high energy prices in recent years, the proportion of fuel cost became the first place of all operating costs, so that COSCO Group implemented bunker centralized procurement strategy in order to control and manage bunker cost in a better way.COSCO Petroleum Pte Ltd.( hereinafter referred to COSCO Petroleum) is a bunker procurement platform established by COSCO Group in Singapore, which is responsible for the bunker supply to COSCO fleets in the global ports, and fuel cost control. The reason that COSCO Group implemented bunker centralized procurement strategy is, to assemble marine fuel procurement demands from all professional fleets via bunker procurement platform – COSCO Petroleum, after that, it would make scaled purchases and manage these demands professionally and intensively, with the advantage of enterprise scale and extending to the upstream wholesale procurement and coverage gradually, to maximize the overall interests of the group by reducing the bunker cost and the cost of the supply chain effectively.Firstly, the dissertation introduces the research background and overview of the development of the company in this paper, then using the Michael Porter’s five forces model to find out the opportunities and the difficulties faced by the development of the company through studying the macro environment and industry profile of the company’s position in international bunker; it applied SWOT strategic analysis tools, combined with supply chain and purchasing management theory, to find out the pros and cons of the development of the company by research and analysis of the company’s internal resources, capabilities and core competitiveness; this article would use Porter strategic management theory on basis of all above information to make recommendations on strategic options and plan integration strategy in line with the strategic objectives need(including horizontal integration of regional extension and vertical integration of the upgraded industry chain) by positioning the company’s strategic objectives, and reviewing COSCO Group’s development on bunker centralized procurement in the future; in the of the article, it proposed tactful recommendation on company’s strategic development and implementation by combined with the actual situation of the company, based on the group system optimization, the shareholding structure of the company adjustment and optimized business processes internal control mechanism, human resource management improvement, as well as building of enterprise culture promotion and so on.