A Study On Strategic Selection Of HX Cement During The Transition Of Industry

Since the 1980 s,domestic cement industry began to enjoy the golden period of development.After these years,China’s cement industry has reached the world’s first level both in output and consumption.However,with China’s economy entering the “New Normalcy”,cement industry has suffered serious decline in demand and increasingly fierce price competition.At the same time,a series of problems,such as industrial overcapacity,homogeneous competition among enterprises and environmental pollution,brought enormous pressure and challenges to the operation and development of cement enterprises.HX Cement,with a century’s history,is chosen to be the case for this thesis to study the strategy which could be selected by cement enterprises in the transition of the industry.In order to carry out a comprehensive analysis of the external environment,internal resources and core competitiveness of HX Cement,some theories and research methods of strategic management are applied in this thesis,including PEST analysis,Five Forces Model and Core Competence analysis.Then,the strategic selection process of HX Cement is analyzed through SWOT model.Lastly,the specific strategies which HX Cement has selected are analyzed and its experience and lessons during the implementation of relevant strategies are also summarized.The results of this thesis show that HX Cement made full use of its advantages in the transition of the industry and adopted a growth strategy of horizontal integration(overseas development)and vertical integration(RMX and WTFR)to find new profit growth points.These measures made HX Cement take the leading position among the traditional cement enterprises and gradually transform into one of the best enterprises in the industry;at the same time,the selection of these strategies also established foundation for its transformation to a green and environment friendly enterprise and further achieving its goal of long-term sustainable development.