The Competitive Strategy Research Of ShanDong Taishan Iron Limited Company

Shandong Taishan Iron Limited Company was set up in 1994, it was a privately owned enterprise which focused on domestic steel commerce. Despite of the rapid growth of both capital and scope in recent years, it was still threatened by the limited living space, great pressure of competition. The operators' traditional thought pattern shaped by seller's market and their managing mode were becoming the obstacles of their development. Making and performing correct competitive strategy is significant to prompt its rivalrousness and ensure its development.Based on profound investigation and research, the writer employed PEST and five competitive forces of Michael Porter to analyze the opportunity and threat outside and strengths and weakness inside the enterprise. Furthermore, the writer used common competitive theory and dynamic capabilities theory as theory foundation, and used the lasted research results of super competition strategy and blue ocean strategy for reference, to bring forward the Taishan Iron low cost & focus competitive theory.Facing the cherished opportunity of area economic development, and the threat of overmuch of iron production, increase of running cost, the theory holds that, Taishan Iron should make full use of its superiorities, such as its capital, flexible system, good reputation, etc, and should try every means to solve its problems, such as its old-fashioned running, low technique, and dispersive operation management. The company should set up the principle of "do what should do, and never do what should not do.", bring CCERP into effect, emphasize the training of marketing managers and upgrade the level of technique. As well as the running system, humans resource system, and enterpriser culture system, based on the foundation of humanitarian running ideology.