Research on Competitiveness of Coal Enterprises in Shanxi Province - Analysis Based on Michael Porter’s "Diamond Model"

As an important framework evaluating the reasons behind the competitiveness of nations in particular industry, Porter’s diamond is used as the main analytical structure in this thesis for addressing the merge and acquisition issue of coal enterprises in China’s Shanxi Province. Through a comprehensive analysis from the perspectives of the six factors from the model, the paper finds that forming large corporations by merging and restructuring is an inevitable and beneficial way for coal enterprises to achieve scale effect and safe production at the meantime to realize mechanization and modernization. The reform is strategically meaningful to improving competitive advantages and optimizing industrial structures of coal companies. Based on the research and analysis, the thesis also raised 5 feasible ways to further enhance the competitiveness of coal enterprises.