Research On Jl Ship Competitive Strategy

The world economic is in a weak recover status since the financial crisis of 2008,the decrease of the international trade leads to a continuous depress of the shipping market.The BDI(Baltic Dry Index)which show the general status of economic is in the lowest point of the past 30 years.Shipbuilding is directly impact by the depress shipping market,the new building order is drastically reduced and insufficient,which especially show the oversupply of the production capability,in addition to the keeping increase of the labor cost,many good reputation shipyards were restructured or even bankruptcy.Under the circumstance of the low new order volume,the competition goes to an extreme,the shipyards start to perform low price competition.While the whole industry has the problem to get new order,to finance and to delivery,there are no shipyard can stay safety in the depress market,it is a very rare challenge which never happen in the past decades.Therefore,the competition strategies of shipyards need to be scientifically and properly guide to establish their own strength.Take JL shipyard as the research object,by using relevant strategic management theory,as PEST,porter five model,SWOT matrix,and the theory of value chain analysis method,through the in-depth analysis on the shipbuilding industry background combined with the actual situation of enterprise internal,with clear view of the opportunities and threats,competitive advantage and disadvantage,concluded the present situation and develop direction:seize the opportunity,overcome the difficulties and enhance the competitiveness by its' advantage.After evaluate the advantages and disadvantages of each candidate strategy,it is concluded that the competitive strategy of JL shipyard should implement the overall total cost leadership and partly differential on core products,at the meantime point out the factory competition strategy implementation risk and pay attention to it.We hope it can help JL shipyard formulate and execute a scientific strategy,we wish it can also be valuable to the similar shipbuilding company,to increase their competitiveness and bring to long term benefit.