A Study On The Channel Management Improvement Strategy Of China Salt Gansu Branch In A Transitional Context

The salt industry has a long history in China,and it has been a major source of Chinese manufacturing industry and of the national finance for dynasties.Since 2005,China has become the world’s largest salt production and consumption country.However,due to market segmentation and industrial chain segmentation,the national salt industry is generally in a restrained,scattered,chaotic and numerous state.In particular,the reform of the national salt industry in May 2016 has a huge impact on the monopolistic regime which has a history of more than 2000 years.Various types of salt companies are all facing serious challenges of restructuring and development.China Salt,Gansu branch’s predecessor is Gansu Provincial Salt(Group)Co.,Ltd.Founded in 1998,currently having more than 1400 employees,it is confronted with dual reforms pressures of state-owned enterprises and the salt system,and thus the transformation and development is its current main task.As the largest commercial enterprise of salt in the province,Gansu Salt has been engaged in the wholesale of salt for more than 20 years.Although its channels has some social impact and penetration,it has the risk of losing all its value because of such issues as multiple levels,high cost,low efficiency,loose management and weak competitiveness.For the reason that Channel is an important resource advantage of commercial enterprises,how to make the sales channels to become the enterprise advantage,to improve enterprise competitiveness,and to maintain sustainable development in the salt industry reforms till of enterprises,are the research focus of this dissertation.Against the background of SOEs’ restructuring and development as the background,this dissertation takes its current channel management status as its research object,and supported by channel management and promotion theory,using literature review,comparative study,experience summary and other research methods,Gansu Salt’s channel management is analyzed and evaluated,situation by way of PEST analysis,Potter five forces model,SWOT analysis etc.Based on these,and taking into account of Gansu Salt’s current status,channel upgrading strategies as well as key implementation measures have been discussed.This dissertation provides ideas and thoughts to the development of Gansu Salt,and it can also be reference for other similar companies in the industry.