China Seamless Steel Pipe Enterprise Development Strategy Research

Steel pipes, as the blood vessel of industry, are widely applied in various industries. Seamless steel pipe industry as high technology and capital-oriented industry, started very early in our country but developed very late and a lot of constructions were repeated on low levels. In the last twenty years, the seamless steel pipe industry in our country has been developing rapidly, since the importation of the first mandrel mill production line by Baosteel from Japan, various advanced types of rolling mills have been set up. The production quantity can almost meet the requirements of the market. But the unbalanced structure and product mix result in fierce market competition on one hand and insufficient supply on the other. With the development of market economy in our country, the inherited structural contradictions become more outstanding. The low profit making capacity and marginal economic benefit in the industry hinders the industry from healthy development.On the basis of investigation into the basic situation of the seamless steel pipe industry of our country, and by using Industry Organization Theory and Sorter's Competition Forces Model, a detailed analysis is made on the present situation, ambient condition, organizational structure and competiveness of the industry, and the integral development strategy concept of total quantity control and structural reform and three strategic modes of establishing big scale strategic corporation, one point focus strategy and multiple operation strategy to realize the strategy concept is proposed hi this paper in order to strengthen centralization and speed up the structural reform of the whole industry so as to enhance its international competitiveness and profit making capacity. Furthermore, in combination with the present situation of Hengsteel Group, and through SWOT analysis, a combined competition strategy for Hengsteel Group is put forward that Hengsteel Group, taking the favourable opportunity of the Big West Development Strategy of our country, adopt the expansion strategy to build and reconstruct a large size seamless steel pipe production line and adopt the policy of integrating cost leading and target centering.By combining theory with the actual situation, and especially by combining the industry organization theory and strategy management theory with the development of the industry and the enterprise strategy research practice, this paper offers referrence instructions for the present structural reform and technical renovation and long-term steady development of Hengsteel Group.