The Research On The Competitive Strategy Of SL Steel Pipe Co. Ltd.

As the quickly development of the economy, the requirement for oil and gas is increasing rapidly. For this reason, the oil and gas pipeline enterprises increased rapidly. It has a strongly competition in China’s oil and gas pipeline industry. By the end of 2015, China’s oil and gas pipeline production capacity had reached 18 million tons per year. The SL steel pipe company was founded in 1972, belongs to the SL oilfield, then it produced welding steel pipe used only in SL oilfield. In 2004, the SL steel pipe company restructured from the SL oilfield, it became a collective-owned enterprise. In 2008-2009, the SL steel pipe company development is in a peak period by means of the second West-to-East gas pipeline and the Shan Jing pipeline and the other major oil and gas pipeline project.As the rapidly development of SL steel pipe co., Ltd, it faces tough competition. The domestic steel pipe enterprises such as Bao ji,Shashi, Zhejiang Kingland and Julong steel pipe co., Ltd enlarge the capacity of production, meanwhile,the market environment is poorer, so the development of the SL steel pipe co., Ltd get into trouble, in this situation, we must formulate a competitive strategy for the development SL steel pipe co., Ltd to ensure the leading position in the fierce market competition.This paper analyze the internal and external environment of the SL steel pipe co., Ltd,and study the literature of the oil and gas transportation pipeline industry. It makes the decision after analyzing the manufacturing operations of the SL steel pipe co., Ltd using the Porter’s competitive strategy theory. First, it’s to introduce the history and development of the strategy management theory, and introduce the content of the professor Porter’s competitive strategy theory. Second, combining with the current operating status of the steel pipeline market, the paper introduces the practical development of the SL steel pipe company, and using the PEST analysis, the model of five competition forces to carry on the system analysis of the company’s internal and external environment. Then the paper uses SWOT analysis tool to analyze the advantages, weaknesses, opportunities and the threats, and to find the disadvantageous position of the SL steel pipe company in the fiercely market competition. Finally the paper lists all kinds of possible competition strategy, and determines the final overall cost leadership competitive strategy. The paper points out that the company should implement cost leadership in the Production cost, Human cost, Finance cost, Procurement cost and the Selling cost. Finally, it puts forward four security measures for the implementation of the competitive strategy in order to maintain the SL steel pipe company’s leading position in the fiercely competition.