Pangang Group Chengdu Seamless Stell Tube Co.Ltd Study Of Development Strategy In Product Mix

As a domestic old large-scale specialized seamless steel tube maker with the fullest product range in the countey, Pangang Group Chengdu Seamless Stell Tube Co.Ltd. or CSST ( the former Chengdu Seamless Steel Tube Co. Ltd. ) once created brilliant business history. However, during the transformation from the original planned economy to a market driven economy, the company began declining due to lack of enough awareness of the latter, and up to the year of 1999, it had been in a very difficult situation and almost bankrupt, having produced a total loss of 0. 437 billion RMB and an assets to liabilities rate up to 80%. It is regarded that the company' s then improper product mix is one of the key elements responsible for the tragedy. The paper deals with a discussion on all the main aspects concerning the product mix, covering analysis of the macro-environment of the industry, analysis involving the conduct of market, technology and policy. Also briefly discussed here are the possible key risks relating to the company' s product mix development which would be handled with great cares in implementing the development strategy.