Research On Strengthening Our Country's Steel Enterprise's Competition Based On Enhancing The Value Chain

Value chains as a basic model for analysis Company management behavior have been used widely for company to analysis inside and outside value, to determine our competitive advantage. In order to construct company's own advantage, we need to coordinate the internal relationship between different departments, affect and improve connection between vendor, customer and company.It is found that those overseas steel companies all pay much attention on value chains' setting and enhancing. While China steel industry began from planned economy, deep defects exist in its value chain. In 2000's, china steel industry face a lot of changes that come not only from world environment but also from the type of competition. Enhancing our competition ability, improving our value chain is the important problem we need to solve.In this article, we discuss value chain from three steps. First of all, we introduced the definition of values chain, discussed the relationship between value chain and competitive advantage, pointed out that making value chain more profitable is result from the outside environment changes and convertible type of competitions. Secondly, we analyzed the present situation of china steel industrial value chain; brought out the defect that exists in steel industry; learned some lesson from comparing with Korea steel company POSCO. Finally, according to our situation, we point out what is the goal we want to get from improving China Steel Industrial value chain, construct some frame for China Steel Industrial value chain. Through improving value chain, China steel industry will became a profitable chain that aim at customer with high quality, low cost and response quickly. Value chain contributes a lot for enhancing our competition with foreign steel industry. Some other factors like planning, accounting, finance, operating management, quality controlling, also affect value chain.