Strategy Analysis Of Xingcheng Special Steel Co.

The modern steel industry has been developing for more than one and a half century. China's steel output has constantly been the highest in the world for years. China has truly become a big steel country, but not a strong steel country. World steel production capacity now is obviously surplus, and China's industrial structure and products structure are not quite reasonable. Industry competition, including raw materials competition is becoming increasingly fierce. It leads to a surging wave of merging and reorganization. Xingcheng Special Steel, as starting formally from 1993, wants to become one of the most competitive special steel enterprises in the world, and keep strong forever, must make advanced plans for seeking and maintaining sustainable competitive advantages. China's common steel industry represented by Baoshan Steel and special steel industry represented by Xingcheng Special Steel are advancing toward the world. This will be a difficult strategy practice process.This paper regards Jiangyin Xingcheng Special Steel Co. as the research object. We try to find favorable opportunities and unfavorable threats through reviewing and analyzing the development process and status of the domestic and international steel industry, as well as the macro-environment PEST analysis and the industrial five-forces analysis; and we try to find its own advantages and disadvantages through internal resources and abilities analysis. Then by using SWOT analysis, we give proposals to the company for how to grasp the opportunities and avoid the threats according to its own advantages and disadvantages, so as to formulate a more perfect strategy to help it better for the development.Against the status that the corporate culture is not yet sound enough and hindered the implementation of the strategy to some extent, and by using "two dimensions four cultures" method, we give proposals of cultivating excellent corporate culture, technical personnel and technicians contingent.Finally, against the problem that the company strategy formulation and strategy implementation are out of link to a certain extent, we advise the company to establish a "closed-loop strategic management system", in order to combine strategy and operations more closely and form a virtuous "cycle", with a view to bring a better operating performance and sustainable development.We hope that the analysis and proposals can give some reference value to Xingcheng Special Steel Co. and other companies in the same industry.