Zigong Cemented Carbide Co., Ltd. Development Strategy

Zigong Cemented Carbide Corporation (hereinafter refered to as the " ZGCC") is alarge-scale state-owned enterprise engaged in producing of cemented carbide andtungsten&molybdenum products. Responding to increasing competition in domestic tungstenindustry, ZGCC is faced with the growing competitive pressures.Be a traditional state-ownedenterprise,ZGCC is lack of clear strategic planning and strong core competence.With kinds ofrestrictive factors coming up and great changes have taken place in the competiveenvironment, Today's ZGCC is at a crossroad.It is not only a great challenge but also a good chancefor ZGCC. ZGCC must choose the correct and suitable way under the changeful competitiveconditions. It is very urgent and necessary for ZGCC to research and design the future.It is considered in this paper that both the macro-economy envrionment and industrialpolicies in China and overseas are good for tungsten industry.The developing status,strength andweakness of China tungsten industry are emphasized in this paper. Based on the former analysis,thearticle studied the industry chain and character of tungsten inustry, and the competence of tungstenindustry has also been analyzed by using Porter's Five-force model.The resources and competenceof ZGCC are also studied in this paper.A conclusion for products restructuring of ZGCC has beenmade by creativelly analyzed the product competence.According to SWOT analysis,the strategy of sustainable development must be established byconsidering the chance and resource restriction. And the company's strategic target should berealized by forming the competitive edges.As a conclusion,this paper figures out that ZGCC shouldadopt a differentiation and focus strategy, and the coming five-year plan hase been confirmed.Thispaper which birngs forward a kind of strategic thought aimed at ZGCC's competitive environmentcan be used for reference by domestic cemented carbide companies.