Shibao Iron Strategic Development Case Studies

Iron and steel industry is an important basic industry of the national economy, China’s steel production has been for many years ranked first in the world. The current Chinese economic growth continued to decline, the decline in the real economy, infrastructure investment has slowed; the steel industry is seriously affected. Now the iron and steel industry faces overcapacity is serious, unreasonable layout, industry concentration is low, the technical content is low, many problems of product homogeneity, resources and weak control etc.As the steel in the upstream industry, restricting the iron ore industry has been affected by the macroeconomic situation, the downstream steel industry demand; on the other hand China iron ore industry resources is low, low industry concentration, high taxes, and the impact of foreign iron ore, iron ore industry encountered difficulties hitherto unknown.Shi Bao iron ore was founded in1988, is the Inner Mongolia Autonomous Region’s largest local iron powder production enterprises. Shi Bao iron ore through the township enterprises, township enterprises affiliated with state-owned enterprises, state-owned, private joint-stock stage. Business from the beginning of the iron ore mining is also extended to the iron and steel industry, and relates to the foundry industry, animal husbandry, finance etc. From the start to mature, in the face of difficulties and problems encountered in the development of Shi Bao iron ore, through active exploration, enterprise development strategy has undergone several changes. Now Shi Bao iron encounter development bottleneck, the macro economic situation is in the doldrums, resource reserve large consumption of inadequate reserves, integration into the iron and steel industry difficult, how strategic re positioning and choice, related to the success or failure of Shi Bao iron ore.This paper first describes the basic situation of the enterprise in the industry--the iron ore industry and steel industry, then based on the development of detailed account of Shi Bao iron ore, to explore the development strategy of each stage in the development of Shi Bao iron ore group adopted based on the enterprise life cycle theory. According to the development of the enterprise life cycle theory and Shi Bao iron ore, the Shi Bao iron ore will be divided into:the start-up period [1988-1990years], the growth prophase period[1991-1995years], the later growth period [1996-2002years], the permaturation period [2003-2008years] and the advanced state of maturity [2009-2013years]. Using the macro environment analysis, Potter’s five forces model analysis, SWOT analysis and other strategic analysis tools and methods, development and strategic change on Shi Bao iron ore was studied. By analyzing the strategic change of Shi Bao iron ore years of development process, find out the Shi Bao iron ore growing strategy formulation and implementation of the useful experience and shortcomings; through the analysis of Shi Bao iron ore situation and environment, put forward suggestions on the future development strategy and strategic measures of Shi Bao iron ore.