The Study Of Development Strategy Of YP Corporation Under Business And System Double Transformation

In recent years, the global economics has downturn, the supply exceeds the demand in the international oil industry, the crude oil’s price declined at large margin, and the energy consumption decreased. In our country, the oil market demand continues with signs of weak recovery, diversifications in the competition entities, and the decrease of the profit margin in the petrol industry. YP Corporation is the emerging player in the petrol industry, who specifies in the warehousing of the petroleum and faces big impacts and challenges from the current market conditions. Therefore, on the basis of the current situation, to formulate the development strategy for a certain period of time for the future is of significance meaning to YP Corporation’s steady and long term development.According to the process of strategic management including strategic analysis, strategic choice and strategic implementation, this paper analyse and research the development strategy of YP Corporation. Firstly, this paper starts with the internal and external analysis of YP Corporation, using the PEST tool, covering the macro environment analysis from the economical, political, social and technological aspects. The five forces model is also used to assess the industry environment of YP Corporation by analyzing the competitors, product substitute products, suppliers and buyers. By employing the strategic group mapping method, this paper also analyzes the development directions and trends for YP Corporation’s strategic activities. What’s more, with the CPM tool, this paper focuses on the competitive positions between YP Corporation and its main competitors. This paper further analyzes the internal resource status of YP Corporation from the perspective of product life cycle, recourses and competences. By using the value chain tool, analyzing the internal and external value chain activity and extension. Secondly, on the basics of internal and external analysis, this paper identifies the opportunities, treats, strengths and weaknesses, and builds up the SWOT matrix for YP Corporation, and then put forward the strategic options and process further analysis. At last, the suitable options, targets and business process design are chosen for YP Corporation, which specifies the YP Corporation to be the transshipment hub base for trading enterprises around Bohai rim regins and to be the Petro-trading corporations under the background of oil industry system reformation and business transformation. However, the realization of the strategic targets and implementation is not an easy task, lastly, this paper also provides the suggestive guarantee measures from the aspects such as strategic planning, organizational structuring, corporate governance, resource allocation and improving mechanism.