Research On The Competition Strategy Of Blue Scope Steel(China) Building Steel Structure Business

Since the implementation of reform and opening-up policy,China has successfully attracted foreign investment into China market,there is a great development in every field.Currently,the general megatrend of China’s economy development is quite healthy.Meanwhile,the economy running is also facing challenges from economic growth slow down and increasing pressure from economic structural adjustment…etc.Under the background of China economy transformation,industry structural adjustment,higher competition and labor cost up,BlueScope Steel China region is facing challenges in market share drop,product competitiveness down,low profitability,low operational efficiency.The object of this thesis is the competitive strategy of the construction steel structure business of BlueScope Steel(China)Company.The purpose of the study is to determine the basic competitive strategy of the company by identifying the opportunities and threats in the market as well as its own strengths and weaknesses,then to take a series of safeguard measures to ensure the implementation of the competitive strategy and to form competitive advantages for competitors,so as to solve the problems that BlueScope Steel(China)Company is facing,which has very important practical and theoretical significance to BlueScope Steel(China)Company.In term of external environment analysis,the PEST Analysis Model is applied to analyze the macro-environmental factors such as policy environment,economic environment,social and cultural environment and technological environment related to the development of BlueScope Steel(China)Company.The Porter Five Forces Model is applied to further analyze the competitive structure of the steel structure industry,from the threats of potential entrants,substitutes and buyers’ bargaining power,supplier bargaining power and the characteristics of intra-industry competition,to discuss the influence of these five key factors on steel structure industry,and then to expound the market opportunities and threats that BlueScope Steel(China)Company is facing at present.In term of internal environment analysis,this thesis introduced the company’s history,current situation,products and resources and capabilities,and analyzed the ability to create value from basic activities and those supporting activities in each link of the steel structure business of BlueScope Steel(China)Company after applying Porter’s Value Chain Analysis Model,concluded that the core competitiveness of the company are strong customer management ability,professional sales and service team,strong research and development ability and the detailing design ability and highquality solution,and further elaborated the advantages and disadvantages of BlueScope Steel(China)Company.Based on the analysis of internal and external environment,this thesis comprehensively used SWOT Tool to analyze the four possible strategic choices of SO,WO,ST and WT which can be selected by BlueScope Steel(China)Company,then made the strategic choices of BlueScope Steel(China)Company in accordance to the competitive environment and the resources and capabilities,especially the core competitiveness,expounded the vision,mission and core value of the company and further formulated the short-term,medium-term and long-term competitive strategic objectives of BlueScope Steel(China)Company.On this basis,the company’s competitive strategy is established as the integration strategy of Differentiation and Low Cost.Finally,the thesis further elaborated the safeguard measures for the implementation of the strategy from the aspects of customer-centered value,people-oriented development concept,organizational structure adjustment,long-term incentive mechanism,research and development and other resources integration,so as to ensure the execution of these competitive strategies and the achievement of the strategic objectives.