Study On The Development Strategy Of Iron&steel Industry Of China Based On The Diamond Model

Revered as the father of Competitive Strategy, Michael E. Porter advanced Five Forces Model from the enterprise view, and based on industry's competitive advantage and national competitive advantage, he advanced Diamond Model to analyze national or industry's competitive advantage and core competitiveness. Diamond Model includes four factors: production factors; demand condition; strategy of relational industries, support industries and enterprises; structure and competitive rivals, and the four factors should product important benefit based on cooperation with others. In this framework, the paper wants to amylase steel industry using Diamond Model, and study how those four factors infect a company's international competitiveness. This study should help our country's companies find a way to increase their international competitiveness.Except introduction and conclusion, this paper includes four parts. The introduction introduces this paper's study background and study purpose. The first part introduces steel industry of our country, including the industry's achievements and problems. The second part introduces Diamond Model's content and National Development Phase Theory in this paper. The third part describes complete Diamond Model, and analyzes (1) steel industry's relational support industries, including iron ore, water resources, human resource production factors, coal, coke, electricity, transportation and environment; (2) steel industry's consumption industry, including building industry, mechanical engineering, automobile, shipbuilding, railroad, petroleum and natural gas, electric home appliances and container; (3) steel industry's production structure, structure of productive forces, degree of concentration and horizontal competition; (4)the opportunity which our country's steel industry faces and governmental effect in the development of the industry. Based on the analysis of Diamond Model, the forth part advances the idiographic development strategy of China's steel industry, including integrated strategy, human resource production strategy and R&D strategy.