Study Of Egang Company Development Strategy After Its Uniting And Restructure

The domestic steel industry has a quick development since year 2001 and the status occurs great change which major in such fields as: segment product capability is surplus, price decreases in great extent, the government actualizes macro-control and powerful steel enterprises unit and recombine other domestic steel enterprises. At the moment all of steel enterprises feel strong competition pressure.Wuhan Iron and Steel Group recombined Hubei Echeng Iron and Steel Co.,Ltd. in Jan. 2005. Wuhan Iron and Steel Group Egang Limited Company (hereinafter referred as Egang) took brand in due form on Apr.30th, 2005. This is the background of the research which studies Egang's competitive strategy.Taking example for Egang, this research analyzes its interior and exterior environment and its competencies, and chooses its competition strategy as follows: Egang should take focus competitive strategy in the period of year 2005~2010, and innovation competitive strategy of value after year 2010 for continuous development. This research is composed of six parts. The first part analyzes the status of domestic steel industry including the analysis to the unit and merge of world steel industry and the background, content and innovation of this research; the second part introduces basic theory of strategic management and competition strategy; the third part discusses the exterior environment majored in existent and aim products market of Egang; the fourth part discusses the interior environment majored in its competitive competencies and analyzes the development opportunity brought by uniting and restructure in 2005. The article integrates Potter Model to evaluate the strategic factors. The fifth part is its choice of strategy objective and competition strategy; the research considers that focus strategy is its choice at present 5 years and innovation strategy of value will be its choice after year 2010. The last part is conclusion in which the research concludes and summarizes the meaning and reference values of practice of Egang to domestic steel enterprises.The research uses data, field survey, statistical analysis and compare analysis to labor the interior and exterior environment of Egang. Management and Economics, enterprise strategic plan and strategy management are the theory base of the research of Egang's competitive strategy.