Studies On The Competitive Strategy Of Hunan Iron And Steel Industry

Iron and steel making is the main industry in the development of Hunan'seconomy at all times. Valin Iron & Steel Group CO.Ltd., and LengshuijiangSteelworks is mainstay enterprises. Xiangtang steelworks, Lianyuan steelworks, andHengyang steelworks are the holding companies of Valin Group. In 1999, Valin SteelTube and Wire, one of the holding companies of Valin Group, successfully came intothe market, and in 2005, merge application with Mittal Steel, the biggest steelcompany in the world, was finished. By the end of 2005, the capacity of steel makingof Valin is 12,000,000 tons and the integral strength of Valin Group now ranks in thetop 10 in China.Present, China's iron and steel industry is advancing greatly in curent goodmacro-economic Circumstance all over in China, and meanwhile also sufferingdifficulties, such as acute marketing competition, lacking of resoures, rough materialprices rising, costs increasing, power shortage, etc. Therefore, benefits and difficulties,opportunities and risks are mixed.In this article, the actuality and developing tendency of both domestic andforeign iron and steel enterprises are analyzed. The competitive strategy andimplemental measures of Hunan iron and steel industry are put forward by the SWOTanalysis method, based on the investigation of advantages, disadvantages,opportunities and challenges of the industry in Hunan.To win in the compete, Hunan iron and steel industry should share the commonideal of envisaging realities, solving problems, taking advantages, and developing in ascientific way. Can the strategic goal be reached, when the competitive advantages isproduced, based on the predominance and diversity of the main products by theimplementation of large scale and economical production, reconstructing with hi-tech,improving of products, and reform of management.