Economies of Combination Innovation from Group Operation in Petrochemical Complex

Abstract

The circumstances in the oil and petrochemical industry recently have been severe. Under such a severe competitive situation, oil and petrochemical companies come up with the idea of business cooperation in the same region in order to acquire global competitiveness. In this paper, the approach and ways of the high-level integration for group operation in petrochemical complex are analyzed. The author explains the case in business cooperation, and introduces the advanced projects in Japan. And economies arising from group operation are considered. Cooperation with some businesses would be effective for energy conservation and environmental measures, and would advance to pursue some social interests. The paper proposes that economies in group operation have made possible simultaneous implementation o f two strategies, Cost Leadership and Product Differentiation.