A Study On The Competitive Strategy Of Ji’nan Branch Of Baosteel Group Co.

Baosteel Group Co. is China’s largest integrated steel enterprise with the highest level of modernization, also with best development potential. In recent years, the company focuses on product technology and added value. Many high performance steel products are produced, including various fields such as manufacturing, household appliances, food and beverage, special material and high-grade construction. Its products occupy huge shares in the domestic steel market, and also are exported to more than forty countries and regions such as Japan, South Korea, and America.Ji’nan Baosteel Of Baoteel Group Co. is a wholly owned subsidiary (hereinafter referred to Ji’nan Baosteel). Ji’nan Baosteel owns the strong background of technique, resources, logistics, and information services. Ji’nan Baosteel is the professional trader in Shandong and the surrounding area, with products such as cold-rolled, hot-rolled, stainless steel, steel pipe, grain-oriented electrical steel, special steel, wire and other products. Ji’nan Baosteel creates a long, wide, and stable business partnerships and strategic partnership relationship with all customers.The rising fashion of Chinese economy and development model of iron and steel industry in the coming five years will experience a transition period. The external environment of China’s iron and steel industry is bound to appear large changes, facing more enormous challenge. Currently global financial crisis breaks out periodically, which is influencing the real economy. As the world’s top 500 enterprises, Baosteel Group Co. will face enormous challenges. In addition, other domestic steel companies have also accelerated the pace of development. Foreign companies are restructuring. Such kind of pressure from domestic and abroad further reduced Baosteel Group Co.’s advantages. Concerning current status, Baosteel Group Co., must grasp opportunities to meet the challenge, adapt to market changes and realize the economic sustainable development. This requires Baosteel Group Co., to strengthen the competitiveness of enterprises, make strong and competitive strategy and effective implementation plan, strengthen the development ability, and improve the quality and efficiency of growth.Firstly, the author reviews relative strategic theory, and comes to the overall strategy and connotation of management, as well as layers of management. It emphasizes on the strategic analysis tools.Secondly, the author analyzes Ji’nan Baosteel’s opportunities and threats, explained from the internal and external environment. Through the analysis of the available resources and core competitive technologies and capabilities, the author points out the strengths and weaknesses in the development process. Thus recognize the enormous challenges and opportunities. The author carries out SWOT analysis for the company to design competitive strategy. In the empirical analysis of the competition, the study links theory with practice, and combines a large number of theoretical research results of previous development strategy together with actual situation of the enterprise. It not only provides constructive suggestions for companies’core issues such as analysis, selection and formulation of competitive strategies and strategic safeguard measures, but also provides a reliable basis for the development of China’s steel industry in the industry point of view.Finally, the study summarizes and discusses the future development trend. The main analysis method is SWOT analysis. It analyzes Ji’nan Baosteel’s competitive strategy and makes the choices, clearly points out the suitable competitive strategy. However, due to various objective factors and subjective influences of individual ability, the present study needs more improvement.In summary, this study mainly has two aspects of innovation. First of all, it analyzes Ji’nan Baosteel’s Core Competitiveness. It carries out a comprehensive analysis in terms of macro environment, industry environment, industry concentration, steel market demand forecast, the main rival and internal development environment. On this basis, the study comes up with competitive strategy selection and implementation.Secondly, it makes up the content of Ji’nan Baosteel’s competitive strategy system. Under the overall strategic objectives of "To be a leader of grasping customer needs", the essence of strategic management is the competitiveness management. The study presents the main aspects of the strategic plan, with supportive system, including the operating system and control ability, marketing management and service capabilities, safe production and plant management, human resource management, corporate culture development management, information security capabilities, etc.