Strategic Research On Scale Expansion Of DLP Oil Equipment Company

DLP Group Corporation is a joint venture that makes well pipes and casting steels for the oil industry. Over 11 years development, the oil industry-specific pipe business has become matured well, and the normal oil pipes and steel industry has come to a stage for reform due to the market high point in 2008 and the low valley in 2010. Under the current macro economic environment on the global scale, the United States has adopted a double-anti policy and taken trade protection measures against other countries. This causes a surplus to domestic steal products, and thus leading to a strong control on macro economy by the Chinese government. Thus China's oil pipes and casting steel industry now faces a great challenge. The ability to enterprise to determine and implement a feasible business strategy is the prerequisite to cope with the immediate crisis and maintain a sustainable business growth. In addition, timely adjustment to business strategy is equally critical when experiencing large changes in global economic environment.This thesis research on oil pipe industry is conduct through on-site reviews, comparison analysis, qualitative and quantitative analysis. PEST analytic methodology is used to study macro environment, and the five-force model used to simulate and analyze the competitive environment of the oil pipe industry. Then the SWOT composite analysis method provides a solution on the strategic positioning to DLP Group, including adjustment to the business division restructuring, human resources construction, capital operations, business organization optimization, corporate governance, corporate culture and many other aspects.