Research On International Business Strategy Of Guiyang Aluminum - Magnesium Design And Research Institute

Presently, Chinese economy has entered into the “new normal”, the salient features of economic development emerge obviously. In a period of future, Chinese economy still remains downturn situation, domestic fields and industries have been affected in various aspects. In domestic aluminum market, deep structural conflicts such as capacity over-supply, shortage of application, price go-down and etc. have revealed apparently. For domestic aluminum engineering companies, who has long-term relied on the aluminum industry development, it is immersed in dilemma of industry downturn, investment drop and engineering market serious shrink, the survival environment of aluminum engineering companies is in more difficult. “Going-out” operating business in both market of oversea and domestic is not only survival approach of aluminum engineering company, also initiative appeal of enterprise sustainable development through the international competiveness.Under such circumstance, the dissertation takes Guiyang Aluminum & Magnesium Design & Research Institute(hereinafter called “Guiyang Aluminum & Magnesium Institute”) as an example and adopts theories of strategic enterprise management, the multinational company to analyze the current situation of Guiyang Aluminum & Magnesium Institute’s internationalization operation based on last ten years oversea experience, explicitly elaborate the merits like as solid foundation, strong innovation, powerful backup from parent group and favorable results achieved as well as demerits of market vulnerable, service capability deficiency, lower internationalization level. Meanwhile, objectively analyzes the external circumstances and conclude the opportunity as global capacity relocation, incentive policies by Chinese government and positive impact from “Going Out Strategy” of China’s resource enterprises, also identify the challenge like the integrated engineering company will be instead of traditional single business company and to be the mainstream of global market. In addition to, the dissertation applies Porter’s Five Forces Model to study the development trend of aluminum engineering industry and industrial structure, picture the aluminum engineering design service is non-substitutable; the barriers to entry of industry is high; the industry competition is more serious, finally elaborate the necessity of Guiyang Aluminum & Magnesium Institute’s internationalization operation. Based on the aforesaid, the dissertation analyzes the proposal of Guiyang Aluminum & Magnesium Institute’s internationalization strategies according to the guiding ideology, strategy objective, strategic emphasis and principal contents, points out the approach of the Guiyang Aluminum & Magnesium Institute to realize internationalization strategy, it is expected to provide theories and reality basis for China engineering design institute operating business in international market.