A Research On Development Staregies Of Sic In The Chinese Steel Market

Recently,the Korean iron and steel industry has been struggling somewhat,unfortunately,SIC as well.The SIC,Korean steel by-product recycling company that produces and supplies diverse briquettes to POSCO,Korea’s largest steelmaker.The various briquettes are essential additives for POSCO in the production of high-end steel,such as automotive steel.Also,SIC imports about 70% of the materials for its main product from China.Thus,the Korean steel by-product company has actively sought for a solution,such as Chinese market expansion to overcome hardship in unlimited competition structure and the world’s steel economy.Therefore,SIC needs development strategies to go beyond present phenomenon and its adversity.That is,China is focused where SIC must go through because China’s total steel production output is about 12 times that of Korea and then,it is likely to surpass its competitors in all aspects and become a global steel giant.The purpose of this study is to investigate the external environment analysis of the iron and steel industry between Korea and China,and then to examine how POSCO enters the Chinese market through a case study,what kind of strategies POSCO undertake in the Chinese steel industry to expand its business and what the result is from the SWOT analysis of SIC.Thus,the mixture of the case study,SWOT analysis,and environment analysis would be utilized as a guideline for development strategies of SIC.The implications from research indicate four different development strategies that SIC can undertake.On the basis of results of this research,it can be concluded with effective and efficient localization,upgrading products,green marketing and ingredient branding strategy.