Coal companies' multiple strategies for resisting risks

With the spread of the financial crisis, the intensification of the European debt crisis, the downturn of the world economy, and the downward adjustment of domestic economic growth, the coal market has experienced phenomena such as slow sales of products, increased inventory pressure, and a sharp drop in prices. Coal companies have been severely affected by the market crisis. Less companies have already suffered losses. However, Shenhua Group, Yankuang Group, Kailuan Group, Huainan Mining Group, and Shanxi Coal Group rely on their unique strategies to demonstrate their strong power against market risks.

In 2011, the assets of Shenhua Group reached RMB 626.9 billion, operating revenue of RMB 282 billion, and profit of RMB 75 billion, achieving more than 400 million tons of raw coal production. Corporate profits have risen steadily. It is expected that profit will reach 78 billion yuan in 2012. Yankuang Group successfully achieved listing in Shanghai, Hong Kong, New York and Australia. In 2011, only Yancoal Australia produced 22.08 million tons of raw coal. Kailuan Coal Mine is working hard to build China's "Ruhr" and plans to reach the end of the "Twelfth Five-Year Plan" with raw coal output of 100 million tons and operating income of 250 billion yuan. Huainan Mining Group has achieved the “Four Worry-free” characterized by the worry of no shortage of coal, no market worry, no worries of railway transportation, and no worries of coal-fired power industry barriers. In the first 10 months, Jinmei Coal Group achieved an operating income of 133.4 billion yuan and a profit of 3.58 billion yuan.

What are the reasons for having a winning formula? The answer lies in its effective marketing strategy.

The reason why Shenhua continues to sing high praise songs is mainly due to the integration of industries through mining, roads, ports, and aviation, and the integration of vertical industries such as coal, electricity, oil, and chemical industries as well as supply, production, transportation, and sales. Operational integration, cracking coal transportation difficulties, excessive correlation between coal prices and corporate profits, and a single long-term bottleneck in the coal industry.

The reason why Yankuang Group “flowers” ​​at home and abroad at the same time, thanks to its internationalization one step ahead. Since the 1990s, Yankuang Group executives have actively conducted research and preparations for overseas investment. It not only became the first Chinese company to “go global” to develop overseas coal resources, but also completed the largest acquisition of Chinese companies in Australia in 2008.

The reason why Kailuan Group is ambitious is mainly due to the fact that its sword strikes the front and it is due to the development of the coal logistics industry. A new modern logistics model featuring coal road, port, and navigation integration and specialization in coal logistics. “Based on coal-independent coal and coal extension, it does not abandon coal” and realized the transition from “enterprise logistics” to “logistics enterprise”. It is estimated that the income from logistics business will be 100 billion yuan. This has provided a good foundation for the transformation of this 130-year-old coal company.

Huai Mining Group has been able to achieve “Four-worry”, under the current state of decline in the domestic coal industry climate index can also continue to wage increase in wages to workers, and take the lead in the country to break the industry and regional boundaries, so that coal resources Converted into electricity, changed coal for transmission, coal and electricity integration, "building a large mine, do large power, do capital," there is a close relationship.

In the coal industry with strong enterprises and old companies, the emergence of the Shanxi Coal Group is obviously due to the distinctive transformation path that highlights the gasification. With the help of local policies, it cooperated with its peers and set off an upsurge of “gasification Shanxi” and won market opportunities for itself; at the same time, the self-developed in-hole underground extraction technology has increased the amount of coalbed methane drainage by more than 4 times. .

How to "strategize strategy"

It can be said that if there is no advance judgment on the sustainable development of enterprises, as well as keen awareness of market changes and intra-industry competition, and the company's development strategy is timely laid out or changed, the above companies can still follow their own rhythm in the face of sudden changes in the market. It is almost impossible to achieve good market performance while successfully meeting market challenges. Therefore, it is clear that "strategic strategy", that is, within a certain period of time, making scientific decisions on the overall, long-term development direction, goals, tasks, and policies, and resource allocation, is a guarantee of corporate success. Coal company leaders must understand this.

Then, under realistic conditions, how should coal companies "strategize strategy"?

First, we must understand, grasp, and make good use of national policies. In recent years, the state has encouraged the merger and reorganization of the coal industry. Coal companies should be stronger and stronger on the basis of energy, firmly adhere to the development of the main coal industry, and seize every opportunity to implement mergers and expansions to develop enterprises so that they will have the opportunity to grow by leaps and bounds.

Second, we must also focus on operating on the basis of moderate coal diversification. Looking at the outstanding coal companies mentioned in this paper, they have in common that, starting from a vertical and horizontal perspective, they will make the company bigger and stronger, extend the industrial chain, find value-added points, control the value chain, and grasp profit points, and constantly improve the inner strength of coal. Value, to achieve cost reduction and efficiency.

Finally, the vision of development should be broadened. Based on the Group's headquarters as a management center, control center, technology center, and capital center, it focuses on coal resource enrichment areas outside the province and abroad. Careful observation of outstanding coal companies will reveal that their tentacles extend not only to Shanxi, Inner Mongolia, Xinjiang, Guizhou, and Shaanxi, but also to Australia, Canada, and Mongolia. The External Feeding Department and the Safeguarding Department are very appropriate illustrations.

Of course, strategy formulation is not a matter of fabrication. When a strategy is formulated, coal companies and their leaders need to be aware of changes in the industry, the internal and external conditions of the market, and the development status of the company. The company's strategy must be based on the market, the development environment, and The actual situation of the company is fully understood and analyzed.