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The Research of the Diversification Strategy of the Coal Company in Xinjiang Based on the Core Competency

Author: HeQiuTian
Tutor: SunHui
School: Xinjiang University
Course: Business Administration
Keywords: Coal enterprises Core competency Diversification Strategy Xinjiang
CLC: F426
Type: Master's thesis
Year: 2012
Downloads: 183
Quote: 0
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Abstract


Xinjiang is one of important strategic energy bases in China. Conditioned bytransport bottlenecks, the coal industry of Xinjiang has been in the process ofextensive growth mode for a long time and local enterprises grow slowly. Manycompanies are actively looking for an effective way out of the woods, while thediversified development strategy is a feasible measure. Plenty of coal enterprises areto consider using this opportunity to achieve growth pattern change, carrying outdiversified development, changing from passive to active in the course of regionaleconomic leapfrog development in Xinjiang and to undertake industrial transfer fromXinjiang to eastern China. The diversified development strategy, however, should bebased on their core competitiveness. It is necessary to select suitable industries in thelight of local conditions; otherwise they would be in a passive position.On the basis of predecessors, this paper analyses inherent relationship betweendiversified development strategy and the theory of core competitiveness. WithXinjiang Natural Energy Group--a coal company as an example, the paper trying toexplore the possible ways of diversification strategies from a theoretical point ofXinjiang’s coal enterprises which are based on the core competitiveness of thepossible ways of diversification strategies. In view of the impact of the internal andexternal environment, diversification is an effective way to sustained profitability.Through the evaluation and environmental analysis of the core competitiveness ofenterprises, this paper, and through analysis of the advantages, disadvantages, theopportunity that faces and challenge, puts forward the construction of Xinjiang’s coalenterprises diversification strategy and its implement steps. Providing a train ofthought for the enterprises seek the way of diversified development.

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