Baosteel Group Shanghai Steel Tube Co., Ltd Development Strategy Study

In recent years, seamless steel pipe production grow rapidly in our country. China has became the largest steel tube producer, consumer and exporter in world. However, while China's steel tube industry develop rapidly, there are some major problems, for examples the overall steel tube industry planning, enterprise blind development, the phenomenon of low-level redundant construction is very serious, which bringing a severe market competitive; lack innovation ability; product structure is not reasonable; large difference in quality, high cost and less competitive ability. China's steel tube market has become a part of the world steel market, our steel tube industry has a big gap with foreign steel tube companies in the size, quality, cost, service and efficiency, so China's steel enterprises are facing tremendous competitive pressure.How to effectively research and response the changes in the external environment, and make development planning and strategy for the challenge has become a urgency issue. This paper attempts using industrial structure theory, resource capabilities theory such as strategic management theories, using case by case analysis approach and qualitative and quantitative analysis method, based on the strategic analysis of shanghai steel tube company, and try to answer the steel companies how to respond to new changes, and establish a new development strategy, put forward our suggestions for referrence.This paper using empirical research method and strategic management knowledge for the specific business case, analyzed and discussed development strategy of shanghai steel tube company carefully. After analysis shanghai steel tube company strategically, this paper considered that the company's strategy should be:at external, rely on the resources of parent company Baosteel Group, funds, technical superiority, using independently developed methods, relocate and transformate the existing technology and equipments, in order to further reduce the cost, improve product grade; at internal, on one hand, further study and digest the modern enterprise system of Baosteel, strengthen management, improve efficiency; on the other hand, product strategy should be based on products diversity, increase high pressure boiler seamless steel tubes production and enhance innovation ability by using internal resources, develop new products, increase market share.