Competition Strategy Analysis In The Aluminum Corporation Ltd Of China

This article makes an analysis of the policy, the environment and the development of the domestic aluminum industry facing. In accordance with the order of aluminum industry chain, it demonstrates alumina, aluminum and the supply and demand of the aluminum processing respectively from the perspective of its supply and demand.It also makes an analysis of the macroeconomic environment, industry environment the Aluminum Corporation Ltd of China facing, and their strengths and weaknesses in competitiveness.By applying the Mike Porter's competitive advantage model, this article conducts a comprehensive analysis of competition capacity of the Aluminum Corporation Ltd of China. It discusses five aspects of the company's competitive situation and competition capacity: they are competition among existing enterprises, analysis of potential entrants; substitutes threat analysis, risk analysis, raw material pressures, and customer bargaining power.Through the change of competition capacity and competitive strategy of this company in recent10years, it proposes the competitive strategy of the company—low-cost operating strategy.Furthermore, it also analyzes the financial situation, the financial risk, operational risk, policy and institutional risk the company facing.In the end, this article concludes with the analysis of the competitive strategy, existing problems, and the company's restructuring program of the Aluminum Corporation Ltd of China. In accordance with the severe competition the Aluminum Corporation Ltd of China facing, it proposes a strategy of low cost and structural adjustment program which can enhance product profitability. By taking the rational distribution of production capacity, speeding up the access to energy and resource and the reformation of the management system of the company, promoting the research and development of energy-saving technology and high value-added product, accelerating the application of high value-added products and developing new profit growth point, it can lead to low-cost operation, and enhance the competitiveness and profitability of the Aluminum Corporation Ltd of China.