Study On Development Strategy Of Chongqing Iron & Steel Co., Ltd

Chongqing iron & steel Co., Ltd (hereinafter the "Chongqing Steel") is a large-scale iron and steel enterprise with long history. Its annual production in 2006 was 3 milion tons, representing an increase of 100% as compared with 2000 while the whole annual steel production of China had increased 225% during the same period. When the other steel enterprises are developing rapidly, Chongqing Steel faces the challenge of surviving because of its small production capacity, old technology and equipments and high cost of iron ore. This article is going to find the problems that have been affecting the development of Chongqing steel during the past years by analyzing the development condition of Chinese iron and steel industry and some suggestions on Chongqing steel's strategy programming and performance are put forward in order to improve its capacity of competition and surviving.Firstly, the basic theories on market structure analysis, strategy research and marketing are introduced. Then in the second part, the article focuses on the analyzing of chongqing steel's strategic environment and the market structure of iron ore resource in the world and the reasonable counteractions should take. When analyzing Chongqing steel's environment, the PEST model is used to analyze its macro environment and the 'Five Force' model is adopted to analyze its competitive environment and find out the main factors that has affected its capacity of competitiveness and development during the past years. The SWOT analysis is used to critical review all the external and the internal environmental factors and make out the potential strategic plans for final selection. In the third part, the QSPM method is adopted to compare the potential strategic plans to help to make a selection and find the most suitable and reasonable strategic plans for our company. The final part is the method we should take to implement the selected strategy and the conclusion.Through the research of this dissertation, the author hopes that the reasonable suggestions will promote Chongqing steel to undertake the strategies of differentiation and backward integration to improve its product structure, stabilize its iron ore supply, reduce its purchasing cost and achieve its strategic goals.