Zhuzhou Smelter Group Co., Ltd. Competitive Strategy

Looking back on 2010, the nonferrous metals industry experienced many challenges. In the first half, the debt crisis of European Union affected the world. In the second half, the domestic inflation and domestic demanding coexisted. The nonferrous product market was fiercely competitive in the second half after the commodity turnover had been shrinking. Combined with the dual pressures of resources and environmental protection, the nonferrous enterprises faced the severe challenges of the market. Zhuzhou Smelter Group Co. Ltd., an old state-owned enterprises that had been established for fifty years, is facing a turning point in its history. It should go from here?The paper, at the beginning, reviewed systematically the theories such as the competitive strategy. Based on it, the essay analyzed the macro environment of Zhuzhou Smelter Group with a PEST analysis. By means of Porter's Five Forces Model Decomposition, it analyzed the competition that Zhuzhou Smelter Group had been facing on the market and found the core competitiveness of the enterprise and its current challenges. By means of SWOT, it analyed reasoningly Zhuzhou Smelter's strengths, weaknesses, external opportunities and threats. The paper also conducted a study on the Blue Ocean strategy that the company should choose a combination of low cost and differentiation of the basic competitive strategy and choose the industry innovation at the same time. The paper's emphasis is the strategy that Zhuzhou Smelter Group should choose to enhance their market competitiveness. It analyzed the competitive strategy of Zhuzhou Smelter Group, and made the detailed implementation procedures, control methods and safeguards for the implementation of the strategy. The paper tried to turn Zhuzhou Smelter Group into a "resource-saving and environmentally friendly" green smelting enterprise while its market competitiveness strategy was enhanced. Finally, this study can be expected to provide some reference for the metallurgical industry and even the same type of strategic development of large state-owned enterprises.