Study On The Development Strategy Of Fushun Special Steel Shares Co.,ltd.

Steel price has plummeted since 2010,the special steel industry is facing challenges and opportunities for the structural adjustment and the great development of strategic new industry.As an important national defense and military use enterprise, Fushun Special Steel needs to know its own development stage characteristics, macro economic environment and competitive advantages so as to win in the superior slightly tide of industrial revolution. In order to further increase the enterprise core competitive advantage in the fierce competition, Fushun Special Steel must be clear on the next stage of development strategy and development plan. Therefore, to maintain the competitiveness of the enterprise, PEST analysis model is used to analyze the political factors, environmental factors, social background,scientific and technological factors in the process of enterprise development, so as to determine the favorable or unfavorable factors of the enterprise situation. By using the Michael Porter’s five forces model,the company’s industrial environment is analyzed in detail. The threat of potential competitors is weak because of the special steel industry’s high barriers to entry. Meantime the alternative products will also not pose a threat to special steel products in a short time because of the same high quality professional requirements. Competitors’ tend to specialization, collectivize, high-tech, high quality, high output and high investment will be a threat to the advantages of the traditional brand of Fushun Special Steel. The supplier’s bargaining power advantage is obvious, but bargaining ability is relatively weak. On the other hand, Fushun Special Steel sales process exists differentiation, which has a weak pricing power for the low-end product, and a considerable pricing power for the high-end products due to the low overall demand. By using SWOT models,this thesis analyses four aspects of the enterprise internal and external environment including opportunities, risks, advantages and disadvantages to develop a suitable management strategy for Fushun Special Steel i.e. adhering to the concept of innovation leading enterprise development, continuous investment in technological innovation, service innovation, management innovation and mechanism innovation, adhering to the "variety, quality, efficiency" as the core of business and adhering to the high-end, differentiation, diversification of product development direction. The variety of structural adjustment and market development should be vigorously promoted, mainly on the development of high temperature alloy, high-strength iron, high-grade automobile steel, high speed steel, high grade mould steel and other main products such as wind power, nuclear power and titanium alloy. The guarantee capability of the national defense military industry and the national economy key industry production should also be improved on the basis of scientific and technological innovation, increasing the high-end product market share both at home and abroad so as to build a national iron and steel enterprise. Finally, opinions on the implementation of the development strategy of Fushun Special Steel are also put forward.