Study On The Competitive Strategy Of Chinese Silicon Steel Industry

As high-end steel products, silicon steel is one of the development directions for steel industry in future. The development of Chinese silicon steel industry plays great role in development of Chinese steel industry towards high quality, high level and high value-added. How to draw up the strategy of Chinese silicon steel industry? Based on this question, with tool of SWOT analysis and Porter's competitive strategy, this paper proposed the strategy of silicon steel industry through analyzing the environment factors and internal capabilities, which provides a definite strategy for the development of Chinese silicon steel industry.Firstly, based on PEST analysis method, the paper analyzes the exterior environment in the development of China's silicon steel industry from economic, political, social and technological aspects, and defines the opportunities and threats.Secondly, the paper analyzes the current silicon steel market situation, and predits market situation in the following 3 years.Thirdly, the paper makes analysis on production situation in China's silicon steel industry, and conducts comparative analysis with the advance level in foreign counterparts from the following aspects: overall product mix, production capacity and process of high-end products, technological level and firms' competitiveness. Therefore, the paper determines the strength and the weakness of China's silicon steel industry.Based on the above, combined analisis tool of SWOT with competitive strategy proposed by Porter, we proposed the competitive strategy and corresponding implementation strategy of Chinese silicon steel industry. The suggestion on implementation strategy is discussed on both firm strategy level and the government policy level. The paper will have good directive significance for the future development of Chinese steel and iron industry.