Study On Competitive Advantage Of Laiwu Iron And Steel Group Based On Value Chain Analysis

With global economy integrating, the market competition is becoming increasingly acute.The enterprise's competitive pattern has developed whole competition among value chain systems. In the meantime, the industrial value chain shows quickly resolving and integrating. In recent years, quick development of steel industry leads to incoordinate develop situation among industrial chains. The external support conditions that have iron ore, coal, transportation, electric power and enviroment become crucial actor of steel enterprise's sustainable development. At present, Laiwu iron and steel Group is being in rapid development, enterprise's core competence and the capability of integrating external resources can't support strategic object's accomplishment.Therefore, under current industry setting, it is important to obtain competitive advantage and realize durable development for Laiwu iron and steel Group studying value chain and value chain system from strategic high plane.Firstly, this paper summarises some theory, introduces Michael E.Porter's theory on value chain or competitive advantage as well as theory of relation between value chain and competitive advantage, emphatically explains the theory that value chain effects on competitive advantage of cost leadership and differentiation along with technology, establishes frame of theory and point of view that study enterprise's competitive advantage. Secondly, this paper briefly recounts research outcome on appling value chain to study enterprise's competitive advantage.In the main part, this paper deeply studies enterprise's internal or external value chain and cost advantage of Laiwu iron and steel Group with value chain strategy analytical tools, analyzes enterprise's internal value chain component effect on cost advantage, and put forward a conclusion that develop the circulatory economy to raise economical benefit, social benefit and environmental benefit totally, and optimize manufacturing process, enhance strategic cost's control, improve market competitive competence.This paper studies enterprise's external value chain, including vertical and horizontal strategy value chain effect on cost advantage, and advance a conclution that put stock strategy's reform in pratice, ehance client relationship management, compress marketing channel on vertical strategy value chain, and ehance horizontal competition's comparison, as well as found operate system of strategic supply chain, integrate external resources , realize coordinative development of enterprise's core competitiveness totally on chain. Furthermore, the paper studies the relation between differentiation competitive advantage and product structure or sell characteristic, and put forwarda project that optimize product structure, integrate marketing channel and improve competitive competence of product brand. At last, this paper advance competitive strategy and policy choice that improve competitive advantage of sustainable development on the basis of systematic thinking research content.