Research On Competitive Strategy Of Bonded Ship Fuel Supply Business Of S Fuel Oil Company

In January 2020,the Chinese government officially issued the "Announcement on the Implementation of Export Tax Rebates for Bunkering Vessels on International Voyages." It pointed out that from February 1,2020,foreign trade ships sailing in China’s coastal waters,inland rivers,and other waters should be filled with fuel oil,it can enjoy preferential export tax rebate policies,such as a value-added tax rebate rate of 13%.At the same time,the Ministry of Commerce of China announced the first batch of low-sulfur marine fuel oil export quotas in2020.The general trade export quota and the total quota received by the five major domestic oil companies are 10 million tons.The issuance of these policies will help maintain the normal order of the domestic petroleum product market and help domestic oil refineries improve the export process related to the production of low-sulfur marine fuel.Besides,China’s free trade zone enterprises and refineries with export quotas catch the opportunity of the bonded fuel oil market based on the low-sulfur trend,started large-scale production and supply of low-sulfur fuel oil.With the large-scale production of oil refineries,China’s bonded market has greatly reduced the dependence on overseas resources.The competitiveness has increased significantly as well.It brings new opportunities for China’s bonded ship fuel market.S Fuel Oil Company is a wholly-owned subsidiary of S Petrochemical Group’s sales company.In June 2018,S Fuel Oil Company moved into the Zhejiang Pilot Free Trade Zone as the "Global Ship Fuel Supply Business Center".It is a functional management department responsible for the fuel supply of bonded ships.S Fuel oil Company has a national chain operation qualification.After more than ten years of development,the ship fuel supply network covers domestic coastal ports and more than 50 key overseas ports.Among them,there are 18 oil depots in the camp and more than 100 delivery barges.During these 10 years of development,S Fuel Oil Company faced many complex challenges and crises.On the external side of the company,it is affected by the COVID-19,the global economy has turned down,the shipping market is sluggish and the demand for fuel is dropping.Second,the continued slide in oil prices has reduced the profitability of oil supply companies.On the internal side of the company,first is the competition strategy not clear enough and the product cost control is not accurate,also the net profit margin is low.Second,the marketing strategy is vague,and the domestic market development is insufficient.Third,the human resource strategy is backward,and the performance appraisal,salary,career planning of the key employees are not matched with the international environment.Fourth,the brand strategy is difficult to achieve and cannot be transformed into productivity.Based on these information,the net profit of the company is relatively small.Therefore,this research focus on how to solve the bonded ship fuel supply business of the fuel oil company to maintain a high market share,and the level of profitability and the choice of competitive strategy of S Fuel Oil Company.This research uses the Porter’s five forces model,PEST model,CPM matrix,and other tools to analyze the external macro-environment,industry environment and market environment of s Fuel Oil Company’s bonded ship fuel supply business.Also analyze the internal environment of the fuel oil company’s bonded ship fuel supply business from the perspective of corporate resources,corporate capabilities,and corporate operating status.Base on this research,this paper list the external opportunities and threats in the bonded vessel fuel supply business of S Fuel Oil Company,as well as the internal advantages and disadvantages of the company.In addition,this research also uses the EFE matrix and IFE matrix to further analyze the company’s situation.Finally,to implement the "differentiated competition strategy",this research use four measures of chemistry which are proposes the differentiation of bonded ship fuel supply products suitable for S Fuel Oil Company,the differentiation of bonded ship fuel supply services,the differentiation of bonded ship fuel supply channels,and the difference of bonded ship fuel supply brands.Four aspects that are how to use human resources,safe production,market operations,and brand strategy management.To ensure that the s fuel oil company’s bonded ship fuel supply business is in the leading position in the industry.