Abstract: China is rich in coal,poor in oil and gas. Coal is the most important and the primary energy in China.However,in terms of the current competitive energy market environment, the development of China's coal industry has encountered difficulties.In order to better develop the coal industry in Liupanshui area,this paper combines the theory of competitive strategy and the development of coal industry in Liupanshui City,uses PEST analysis and Porter five force model to analyze the coal industry in Liupanshui City,and obtains the ecological coal development strategy model of integrating resources,combining its own advantages and great force to attract talents, and finally achieving industrial transformation.The analysis results can provide theoretical support for improving the competitiveness of Liupanshui coal industry.

Key words: Coal industry,Industry research,Competitive strategy,Porter's fiveforce model, PEST analysis method.