Baosteel Special Steel Branch Development Strategy

China's national economy grew fast in recent years. Its iron & steel industry developed very quickly with annual rate of 10% or so for several years in succession. In 2008, China turned out more than 500 million tons crude steel, one third of total output of the world, among which 13.3 million tons were specialty steel. With the quickening pace of mergers and acquisitions in steel industry, part of common steel manufacturers shifted into the specialty steel sector. Large quantities of specialty steel production lines have been established and put into operation leading to overproduction capacity and severer competitions.Baoshan Iron & steel Co., Ltd. (Baosteel) integrated its resources, focused attention on core business and outlined three quality products manufacturing bases, i.e. common steel, stainless steel and specialty steel in its integration program. With the completion of a series of technical transformation, updating equipment, streamlining products mix and optimizing the structure of employees, Baosteel Specialty steel Branch, inheriting both advantages and disadvantages from the former Shanghai No.5 Steel Company and enjoying the intergraded resources of Baosteel Ltd., has to re-position for itself and set strategic positioning target accordingly in the ever-severe market competition.Combined with general strategic target of Baosteel and the current situation and development trend of iron & steel industries both at home and abroad, this paper systematically analyzed the development trend of specialty steel manufacturing of the world and current situations of specialty steel manufacturing in Baosteel and China. It investigated the specialty steel manufacturing in China with the model of Five Competitive Forces. It also analyzed Baosteel Specialty steel Branch's strengths, weakness, opportunities and threats in development with an SWOT model. Based on above work, the author put forward the development strategy for Baosteel Specialty Steel, established general strategic targets, clarified general strategic thought and formed strategic blueprint for extensive form expansion after investigation and judgment on implementation extensive development from a strategic point of view. Further more, the author put forward four major tactics of actions, i.e. the tactics to realize the development of specialty steel in a low-cost, high quality way, the tactics to optimize and adjust special product structure, the tactics to optimize and select the specialty steel process flows and the tactics to integrate exiting specialty steel manufacturers realizing specialty steel production.The author expected to make a beneficial exploration and strategy management and practice via summary of the EMBA courses in classroom.