Research On The Development Strategy Of JiEin Welded Tube Company Of Tonggang Group

In the period of "11th five-year", with the rapid development of major steel tubeindustries such as energy, transportation, real estate, steel structure, automobile and railtransit industry, the domestic steel tube industry has been greatly expanded. At anaverage annual growth rate of15.69%, the total production of steel tube in civil from27810000tons in2005jumped to57650000tons in2010, and increased by107.30%of29840000tons than that of2005. At the same time, the adjustment of product structurehas achieved obvious effect and it has played a great supporting role on downstreamrelated industries, especially the energy industry, but also has exposed manycontradictions; the serious oversupply of production, the low industrial concentration,the aggravation of the market competition, the dropped corporate profits and so on.In the past10years, the seamless steel pipe production expanded rapidly and itsstructure optimized continuously and its high quality products was in a leading position.The welded pipe production was growing faster than that of the seamless steel pipe. Inthe field of welded pipe, the ERW welded pipe was in dominant place and took place ofseamless steel pipe gradually, at the same time in the field of small and middle diameterpipeline of long transmission oil and city gas pipeline it also replaced the market ofsubmerged arc welded pipe. With the rapid development of hot-rolled coil and theprogress of welding technology and testing equipment, it has formed a new round ofcompetition between the increasing welded pipe industry and seamless steel pipe andsubmerged arc welded pipe industry.Because the straight welded assembling unit has the characteristics of smallerinvestment and faster economic returns, at the beginning of21Century, lots of straightwelded assembling units have been built in a short time across the country especially inthe private enterprise. With rapid expansion of industry capacity, the welded pipe industry benefit is hard up. Jilin Welded Pipe Company has the design capacity of about100000tons, but for its unreasonable process arrangement and technical equipment andlow product structure, it only released less than50%. Because of low yield and lowprofit, Jilin Welded Pipe Company has failed to get rid of the loss making situation. Inthe period of "12th five-year", it appeared a new structure of straight welded pipeindustry, uneven capacity distribution, unreasonable product structure and low gradeproduct. It brings us a topic, how to develop in accordance with the existing mode,because of its products grade and product structure has not fully adapted to thedevelopment of the industry. But if adjust, what is the most reasonable basis?Therefore, according to situation of the actual production and assembling unitcapacity of welded pipe industry in the period of "11th five-year", adopting the theoryof enterprise strategy management and marketing management, this paper predicts thedevelopment of welded pipe industry in the period of "12th five-year". Through theanalysis of the situation of welded pipe enterprises and market of northeast of China,and according to the situation of the technical equipment, production technology,personnel structure of Tonggang Group Jilin Welded Pipe Co. LTD., using the SWOTanalysis method, gives a profound analysis on the enterprise competition advantage anddisadvantage factors, formulates a strategic goal and its implementation scheme ofTonggang Group Jilin welded pipe company in the "12th five-year" period.