| Since China starts its reform in 1978, iron and steel industry of China has made a great progress. The market of the control system and products for Iron and Steel industry has developed very fast since then. But with development of the reform in depth and improvement of the market mechanism, the market of the control system and products for iron and steel industry becomes gradually into the buyer's market from the seller's. As the buyer, the enterprises of iron and steel industry become mature more and more in the market practice. They make fully use of a sharp weapon of price leverage and market competition to protect themselves. As result, the competition among the suppliers comes to tougher and tougher. It causes price war and increase of cost. The profit goes down dramatically, even there is no profit at all. With China's entry of WTO, a lot of foreign suppliers will pour out to China market. The situation of competition will be more severe. It makes people worried. How do we face this kind of competitive situation? How can we conquer the competition and hold a good position in the competition? This is a problem that every supplier should think about. Truly, this is never a simple question. It relates to aspects of products, marketing and management of enterprises. But it is sure enough that the competition will be main theme of the time. The competitive strategies should be a very important aspect that enterprise must consider at first. It is key factor that enterprise can defeat its competitors forever in tough competition.This paper puts forward four basic hypothesizes based on real market situation of control system and products of iron and steel industry and case study of competitive strategy combining with theory learnt from MBA courses.- The iron and steel industry of China has still a big space to develop. Because it is driven by a lot of preferable factors, such as sustainable and high growth rate of Chinese economy, "going west" strategy launched by Chinese government, Chinese win of hosting power of 2008 Olympics game and Chinese entry to WTO, etc. it will bring a lot of business opportunities to the suppliers of the control system and products of iron and steel industry.- The market situation of the control system and products of iron and steel industry will be severe and the competition will be very tough. The market becomes into a buyer's market from a seller's. It gradually comes to maturity. With China entry to WTO, the local market will be adapted to international one. The market situation will became fiercer and the tough competition will be even much worse due to the foreign suppliers involvement and the rapid development of domestic enterprises.- The competition will be the main theme within new century. You have to use a good strategy if you want to win the competition. Therefore, the strategy is principle problem that the enterprises have to think about at first. The enterprises should have good strategies and understand how to form a good strategies and what kind of factors should be considered when they are forming a strategies.- Implementation of the strategy is more important than it is formed. The enterprise never succeed if implementation of the strategy fails, even it is a good strategy. However, competition among enterprises is always conducted in three-dimensional space, i.e. enterprises, competitors and customers. It is vital to have a correct evaluation and analysis to each of them. Every marketing environment is soleone; it is quite different from others. It is most important to get familiar to the environment and use strategy properly to win the competition.Based on the above hypothesis, the emphases and explanations have been given for the importance of strategy, its forming and implementation from the following points: firstly, the market of the control system and products has been analyzed based on the market situation of iron and steel industry; secondly, it has been explained for the areas of difference between business and consumer market... |
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