Research On Development Strategy Of Coal-to-ethylene Glycol Part Of T Company

T company is a large-scale comprehensive chemical enterprise group.Its Coal-to-Ethylene Glycol plate used to be a star business to create excess profits.Therefore,it hopes to make use of economies of scale to achieve the strategic goal of cost leadership.In the past few years,through the rapid capacity expansion strategy,it has become one of the largest ethylene glycol suppliers in China.However,during this period,great changes have taken place in the external environment.Affected by the anticipation of overcapacity ahead of time and the dumping of overseas low-cost products,T company’s Coal-to-Ethylene Glycol plate has turned from profit to loss,and T company’s established strategy has failed.It is urgent to make adjustments and optimization,so as to achieve upgrading development and turn loss into profit.Based on the basic theory of strategic management this paper focuses on the current situation and existing problems of T company’s development strategy by studying the relevant situation of enterprises and industry data,applying relevant theoretical models and professional analysis methods.The author thinks that the main problems of T company’s development strategy are low integration level,single product structure and downstream application.Blind development strategy makes it fall into a passive situation.It is suggested to optimize the strategy from two aspects:concentric diversification strategy and integration strategy.In terms of concentric diversification,firstly,it is suggested to take the existing coal based syngas in the coal to ethylene glycol plate as the concentric platform to develop several downstream products,so as to realize "one end with many tails";secondly,some existing units can be transformed to produce more differentiated products.In terms of integration,one is to integrate the development and operation of self owned coal mines to improve the backward integration level;the other is to cooperate with downstream enterprises to improve the forward integration level.In addition,some specific suggestions on the implementation and guarantee are given.