The Research Of South China Company Of ZT Competitive Strategy

The domestic refined oil business is monopolized by Sinopec, PetroChina and CNOOC for a long time, there are obviously competitive advantages in specialized firms. With the trend of the oil market and the railway reform, ZT South China Branch has completed a series of restructuring changes. Actually, it has sputtered within a set of parameters, including the reform of the railway oil supply mode, the greater competition, the breakneck growth of clean energy and the increasing operational risk. So the immediate issues will be. In order to adjust to the drastic changing in the internal and external environment and direct the branch to be a competent and sustainable state, we must build on our strengths and account for our deficiencies.First of all, this paper expounds the research ideas, methods and contents of this thesis. It points out the necessity of the strategy for ZT South China Branch. Second, the major opportunities and the facing risks are analyzed by three methods, including PEST Analysis, Michael Porter’s Five Forces Model, strategic groups. For the opportunities, the demand for the refined oil of the railway increases steadily, the refined oil market reform has achieved initial success, oil depots and transportation equipments along the railway have edged open. For the risks, oil supply mode of railway has changed fundamentally, the competitors cite growing, clean energy gradually replaces refined oil, the profit is easily bent by volatile prices, the operational risk increases dramatically. Third, in view of ZT South China Branch’s advantages and disadvantages. For the advantages, it has strong ability to secure resources, marketing, oil storage and transportation and quality assurance ability, information management and brand influence. For the disadvantages, it lacks the terminal customer control, price coordination when markets tumbled, entrepreneurial capacity and human resource capacity. Fourth, three approaches attempts to confirm the branch’s vision, purpose, goal and basic competitive strategy, which include SWOT, Blue Ocean Stratege and value chain analysis. Finally, ZT South China Branch’s strategic goal, implementation and safeguard measures are proposed, and the tailored suggestions are offered for the disadvantages.This paper suggests that ZT South China Branch should seize the current opportunities, develop railway locomotive fuel sales and construction engineering machinery oil business and concentrate on differentiation. It bases on the railway and the market in Southern China, so it seeks to become the integrated service of railway refined oil supply chain enterprise in Southern China. Meanwhile, this paper can provide the development ideas and clear feasibility, leading the branch to make strategy and implementation, so that the branch can keep healthy and sustainable development.