Research On Thyssenkrupp China Region Development Strategy

Thyssen Krupp Group is a German Company and known as “a Global Steel Company” in China.Thyssen Krupp AG was formed by the merger of Thyssen AG and Krupp AG in March 1999.Thyssen was founded in the mid-19 th century and made his fortune in steel.Krupp,founded in the early 19 th century,was a famous military conglomerate,is rich in guns and ammunition.Thyssen Krupp’s headquarter was based in Essen,Germany.Steel business has contributed up to 60% of Thyssen Krupp’s annual revenue.In order to expand its share in the global steel industry,Thyssen Krupp has been increasing its investment in the steel industry and building new steel plants.However,with the outbreak of the financial crisis,the sharp decline in steel demand,and steel overcapacity,leading to the loss of Thyssen Krupp.In recent years,the global economic recovery is slow and sluggish,infrastructure,household consumption and industrial construction are all showing a downward trend,the market supply and demand relationship has unde rgone tremendous changes,the global demand for steel continues weak,the development of Thyssen Krupp is facing many new challengesThis paper applies the development strategy theory to study the development direction of Thyssen Krupp strategy in China.Wit h using PEST analysis tool to systematically analyze the political environment,economic environment,social environment and technical environment of the company in China;With using Porter’s 5 forces model analysis method,to research competitiveness of existing competitors,bargaining power of suppliers,analysis of substitutes,analysis of potential competitors and analysis of bargaining power of buyers;systematically study appropriate strategies for Thyssen Krupp strategy development;with SWOT analysis tool,analyze the company’s internal advantages and weakness,and external opportunities and challenges.With reference to the current development strategy of Thyssen Krupp,this paper concludes that diversified development strategy is appropriate for Thys sen Krupp strategy development,and through committed to technology research and development,it adopts differentiated competitive strategy to obtain higher competitive advantage and resist the impact of competitors.