Research Of Competitive Strategy About Smelting Industry Of Yinzhu Group Co., Ltd

The leading product of YINZHU GROUP CO., LTD (called YINZHU GROUP below for short) is ferrosilicon. With rapid development of Chinese economy, the smelting industry of YINZHU GROUP also had expanded promptly from 2002 to 2003. However, the center government of china have being limited development of this industry by many kinds of macro regulating and controlling methods since 2004. Meanwhile, the smelting industry of YINZHU GROUP started to face surviving crisis.Under basic market situation with supply exceeds demand in the industry, there are many problems on management existing inside YINZHU GROUP, such as singleness of product structure and discussing principles of cost management on production management; deviating practice of enterprise on human resource management; establishment of system being short of stability; not regarding market as guide on sale management; lagging on financial management; being short of cooperation between each part on purchasing management.Based on macro industry background and enterprise's status, The strategy have been established through SWOT analysis, which can strengthen competitive advantage for YINZHU GROUP: summarizing existing experience on management, reducing cost through fine management; Vertical Integration management, integrating up important original material; establishing stable and long term cooperation relation with the end-user using advantage of brand; increasing technical content of product; increasing breadth of product by existing distribution channels; establishing the producing mode integrating mass-produce with customization produce; building up marketing idea, strengthen sale management.The competitive strategy of YINZHU GROUP should be focused on overall cost leadership, and gave attention to two or more things on differentiation. Effecting of The overall cost leadership covers with purchasing management, production management, organization management, human resource management, financial management and sale management. About Differentiation, it is considered that improving customization degree, adjusting structure of product, increasing breadth of product and strengthening ability controlled original ore.Strengthening of competitive advantage on parts don't induce Strengthening of competitive advantage on the whole. Only regarding marketing as guide and restructuring corporate culture, YINZHU GROUP can integrate owning resource efficiently and come out enterprise's core competitive force.