The Development Strategy Study Of Jiangsu Rongsheng Heavy Industries Llimited Company

As one of pillar industries in China, shipbuilding industry is typical oflabor, capital and technology-intensive, and impacted significantly by thefinancial crisis. Under this background, shipbuilding companies are facing aseries of development obstacles, including but not limited to continuedreducing orders, inadequate effective needs from the market, risk of cancelledorders, continued doldrum of shipping market, increasing difficulty in shipdelievery, relatively backward in terms of R&D, and unreasonable productmix. How to adjust industry structure and realize industry transformation andupgrade is a critical issue faced by shipbuilding companies.This paper takes Jiangsu Rongsheng Heavy Industries Limited Company(“RongSheng”) as study object. On the basis of Competition Strategy theoryof Michael Porter, and with such research tools as PEST and Five-force Model,this paper studies the inner and outer environment of RongSheng. WithSWOT analysis and Matrix anlayis of BCG, this pater analyzes potentialstrategy suitable for RongSheng. Combing such analyses and considering thereality of RongSheng, the following strategy objectives are identified: upgradeand transform three major ship types, develop energy-efficient ship, cominginto high value-added shipbuilding sector, strengthen offshore engineering,positioning in ship repairing market. Meanwhile, the paper identifies ovrealgrowth strategy: entrance into high value-added shipbuilding sector andoffsgore engineering; position in ship repairing market through cooperation,M&A, reorganization, and diversification. Futher on, this paper touches how to achieve above strategy via upgrading industry structure, strengthening HRmanagement, increasing input into R&D, improving management andcorporate culture, actively expanding markets, etc.