Jinan Iron And Steel Group's Pre-painted Galvanized Steel Mill Market Competition Strategy

Jinan Steel and Iron Group Colored and Galvanized Steel Plate Mill, established in 2002 with an investment of 300 million RMB, is a heavy metallurgical processing enterprise specialized in producing colored and galvanized steel plate. Constructed in 2002 and put into service in 2003, the mill had operated for two years by the end of 2004. The whole profit is not satisfactory with the average annual volumn of sales of 1000 million RMB and annual loss of more than 10 million RMB. Under the background of prosperity of the whole steel and iron industry, as a subsidiary fully invested by Jinan Steel and Iron Group, the mill suffered from losses year after year, which is due to the following factors: The market share is small because of the short time of operation and the fierce market competition; the price has not reached the ideal state, which leads to the decline of economic benefits and the severe challenge of management. By studying its market competitive strategy, this thesis aims to help this enterprise to formulate proper market competitive strategy and implement it effectively so as to lead this enterprise walk out of depression and make up deficits and increase surpluses, thus fully improve the economic benefits.As a member of Jinan Steel and Iron Group, this author has access to make a profound investigation and research of this enterprise and obtains concrete and full material. On the basis of study of the whole industry and by making use of the theory of market subdivision and the choice of goal market of the science of marketing, this author makes a subdivision of the national market of colored and galvanized plate and points out the goal market for this mill. Then by making use of Porter's model of five competitive forces, this author analyses and studies the structure of the goal market and the opponents' situation. With reference to the SWOT analysis, the author analyses the opportunity and challenge of external environment and advantage and disadvantage of internal condition confronted this mill. On the basis of Porter's theory of three general strategies, the author works out that this mill should take the strategy of priority of overall cost as its market competitive strategy. The final conclusion is that this mill in question should take the strategy of priority of overall cost to take part in the competition in the national market of medium and low-leveled colored and galvanized plate.This thesis also makes a study of the short-term and medium and long-term market competitive strategy of the enterprise and proposes several competitive strategies, such as, forming a strategic alliance.With the rapid development of our economy and China's entry into WTO, more and more state-owned enterprises will face grave test of national and international market, and the metallurgical processing industry will also beconfronted with fierce market competition. By making a study of the market competitive strategy of Jinan Steel and Iron Group Colored and Galvanized Plate Mill, the author hopes to offer a little help regarding how state-owned enterprises participate in national and international competition with rational market competitive strategy.