Development Strategy Of ZJ Company

Since the worldwide financial crisis in 2008, the world economy has been seriously affected. The financial crisis has a deep and profound influence on the formation of the new pattern of the world economy. As an essential part of the world economy, China's economy has come through the adjustment and now is at the growth inflection point. The stainless steel welded pipe industry, one of the newly developing industries, is being greatly challenged by the increasing new entrants, the severer competition and the uprising prices of the raw materials. Under this background, this paper takes ZJ as the object of study, focuses on analyzing how ZJ adjust its business strategies under the pressure and overcome its own weaknesses and obstacles to seize the opportunity to find a new direction.This paper analyzes the external environment, the politics, the economics, the society, and the technology by the PEST model and then will probe into the industrial environment by Michael Port's Five Forces Model. The application of SWOT theory helps to have a better understanding of the strength, the weakness, the opportunity and the threat of ZJ. The strategic plan, including strategic objectives, paths and principles are put forward under the establishment of SWOT matrix and the matching for the development strategy of ZJ.This paper holds the view that growth development strategy is feasible for ZJ. The corporate strategic objective can be detailed as to develop stainless steel welded pipes for building and decoration of other materials based on the 304 stainless steel welded pipes, and then step into the market of pipes of high grade and high added-value, aiming to be one of the qualified stainless steel welded pipe suppliers in 8 to 10 years. In order to realize this objective, ZJ should apply operational strategy, organizational strategy, marketing strategy, financial strategy and human resources strategy.