Research On Competitive Strategy Of Chromium Business Of S Group

Chromium industry is a small metal industry,belongs to nonferrous metals industry.Although volume of production is not much in the world,it is of great strategic significance.It is an irreplaceable element in many industries,such as high temperature alloy(applies to aerospace,military industry,etc.),electronic target and industrial dyes.It is a good opportunity for the development of metal chromium companies,since the recovery of the global economy,as well as the adjustment of China's industrial structure and the development of high-precision industrial fields.The resources of ore in China are scarce,mainly dependent on imports.The production methods in chromium industry have the characteristics of high-energy-consumption and high-pollution.In recent years,a number of backward production capacities have been eliminated.Rigid requirements have also been put forward for the technological upgrading of existing enterprises.As most chromium ore is used in stainless steel production,the main market is closely related to the stainless steel industry.Affected by the steel environment,the chromium industry faces greater volatility which actually is in a stable relationship between supply and demand.How to cultivate and maintain competitive advantage under the influence of the large environment becomes an important issue that every company needs to consider.S group is a large private metal enterprise,which across regions and industry chains.In the past 20 years,with the influence of policy and global development trend,S group has developed and grown quickly.Its production and sales volume has been ranked first in the country.After that,it has been losing money because of poor management and now is facing the dilemma of shutting down production.This thesis aimed at the study of how to make the competitive strategy of S group during its development.First of all,the development process of the company is arranged and the industry environment is deeply researched.Then a detailed analysis of energy chain and the whole industry chain have been given.After that SWOT analysis method is used to analyze the advantages,disadvantages of S group and the opportunities and threats in the external environment.Based on this analysis,combined with the actual situation of S group and the market environment which is going up,centralized development strategy are proposed to orientate the management direction and enterprise orientation.At last,corresponding implementation plans and safeguard measures are put forward.This thesis argues that the main problem of S group is the excessive diversification,especially in industries which are not related to main businesses.The organizational structure and human resource structure are inefficient.The cash flow faced tension and management efficiency is falling down.S group should take focus strategy,to rebuild the value chain,unload non-core businesses,focus on core businesses,and improve the core competitiveness,So that the development of S group will be healthier.At the same time,it is of certain significance for our country to face the same excessive diversification of private enterprises.