Research On The Competitive Strategy Of ZY Salt Company

The report of the 20 th Party Congress proposed "deepening the reform of state-owned capital and state-owned enterprises","promoting state-owned capital and state-owned enterprises to become stronger,better and larger,and enhancing the core competitiveness of enterprises".After the reform of the salt industry system,ZY Salt,as a regional leading enterprise in the field of product development,production and sales,is facing problems such as a year-on-year decrease in market share and a significant drop in profitability due to factors such as unstable salt supply,increased market competition and weak product competitiveness.In this thesis,through research and study of theoretical foundations such as strategic transformation and differentiation strategy,and the use of literature research method,case study method,internal interview method,research and analysis method and quantitative analysis method,we take ZY Salt Company as the research object to carry out the research on the competitive strategy of salt enterprises.Firstly,using the PEST analysis method,the macro environment of ZY Salt Company’s development was analysed from the political,economic,social and technological aspects;using the Porter’s Five Forces model,the industry environment of ZY Salt Company’s development was analysed from five aspects,including the bargaining power of suppliers,the bargaining power of buyers,the threat of potential entrants,the threat of substitutes and the current competitive ability of competitors in the industry;secondly the internal resources and capabilities of ZY Salt were analyzed in six aspects,including terminal coverage capacity,storage capacity,financial capability,social reputation,resourcefulness and R&D capability,and the development conditions of ZY Salt were analyzed,and it was found that its external threats mainly include increased competition in the industry,lack of domestic raw salt resources,rising raw material and labour costs,uncertainty in the policy on imported salt,and domestic overcapacity,etc.The external opportunities include industrial opportunities,capital opportunities,technological development,Asian Games opportunities and upgrading of national consumption;the strengths lie in products,brands,research and development,networks and advanced levels of production equipment;the weaknesses lie in declining profitability,lack of management capabilities,inadequate institutional mechanisms,insufficient marketing capabilities and unreasonable product structures.The EFE and IFE matrices and SWOT analysis were then used to strategically match ZY Salt to identify the "strengths-opportunities" model that best met its development needs.The Quantitative Strategic Planning Matrix(QSPM)analysis was then used to select the three competitive strategies,and it was found that the differentiation strategy was most conducive to giving full play to ZY Salt’s unique competitive advantages,and the differentiation strategy was positioned in general,with specific implementation plans proposed in terms of differentiation in four areas: product,price,channel,brand and services.Finally,specific initiatives for ZY Salt’s differentiated competitive strategy were constructed from five aspects,including enhancing innovation capability,laying out efficient production capacity,adjusting organisational structure,human resource guarantee and corporate culture guarantee,to ensure the effectiveness of the implementation of the company’s differentiated competitive strategy.This thesis addresses the issue of strategy selection and implementation for salt enterprises,and innovatively puts forward the implementation plan and safeguards for ZY Salt’s differentiated competitive strategy,which is of great significance in promoting the benign development of China’s salt industry and salt enterprises.The thesis also has implications for regional state-owned enterprises of the same type that have lost their administrative monopoly advantages to deepen their reforms and enhance their market competitiveness.