A Study On Low Cost Strategy Of BC Iron And Steel Group

In recent years, China's Iron and Steel industry has reached the rapid development along with a sustained and stable national economic growth. However, excessive growth of production capacity leads to oversupply of steel products and the market competition is increasingly fierce. BC Iron and Steel Group (hereafter Bsteel) faces many problem such as high cost and irrational framework. They must analyze the situation, study and make out a production developing strategy meeting the requirement of the market.This text analyzes the market setting, the competing characteristics using method of PEST environmental analysis and Michael Porter's competing theory. It confirm the opportunities and threatens that the company face to in it's developing. It analyzes and evaluates the inner production facility, capacity, production cost, and integral strength of the corporation; nail down the inner advantages and disadvantages of the company. On the basis of this, it point out that Bsteel should adopt cost keeping ahead strateg. Relay on the total cost keeping ahead strategy,firm the product compitation advantage, about the production competing strategy, they should decrease the cost by optimizing the activity of value increment relating to the total cost keeping ahead strategy; To boost the enterprise's core competitiveness through Technical innovations; to reduce process cost by strengthening logistics management and improving technical and economic indicators ; to create the enterprise' cost culture through the implementation of the human resources strategy and enhancement of the quality of staffs ; to establish the"digital" Bsteel plan and realize production automation and management information.This thesis directs BSteel to make "the Eleventh Five-Year Plan" which will Improve the competitiveness, the research method will be used for the reference for making strategy and enforcement for the other companies.