Strategic Technology Choice Of Enterprise Competition Under Uncertainty Demand

Steel industry is an important industry in the national economic, and it plays a significant role in the development of economic. However, the financial crisis struck Chinese steel industry, the main reasons are that the atrophy of international market leading the deterioration of the Chinese steel product market and that the myopic competition for the imported iron ore stocking. The result of the myopic competition in Chinese steel industry not only increases the cost of production but also be subjected to the international market. While, Chinese steel industry carry out the high-input (purchasing the high-price iron ore from the international market) and the simple repetition of production in low skill. In this environment, the Chinese steel industry needed innovative ideas, focus the material and financial resources on reducing production costs and increasing the technology content of the product.In this paper, we concentrate the decreasing of cost and increasing the flexibility of steel-making in Chinese steel industry, and adopt the Game theory analysis for deciding the choice of strategic options under uncertain demand. The main contributions of this paper are in the following:(1) Firstly, Strategy choice model is developed. This part first discusses the factors that influence the choice of technology strategy and production strategy taking different respects into consideration. Then we propose model assumption in line with reality, establish mathematical model, analyze the mechanism of all the factors, and propose theoretical assumption of application analysis.(2) Characteristics of strategy technology choice of steel businesses in China are analyzed. In this part, the present situation and developing trends of Chinese steel industry and the relationship and mutual impacts between these the trends are introduced. Then problems faced with Chinese steel industry are generalized from these macro statistics to ensure the parameter determination of competitive analysis of China's steel industry below.(3) Competition game analysis of strategy technology choice is proposed. In this part, the deviations between model solution and the strategy of technology choice and production choice are analyzed based on previous data of Chinese steel industry and theoretical model in chapter 3. Then problems existing in strategy technology choice are discussed according to the deviations.(4) Counter measures to deal with competition and technological choice for the Chinese steel industry are proposed. Numbers of measures are proposed for enterprises to deal with competition and production technology selection.In this paper, theoretical analysis and application analysis method are combined for answering how the technology costs, production costs, the number of competitors and the other factors that are faced by steel industry under the uncertain environment effecting the choice of optimal strategy, and the solutions are benefit for the selection of flexible production technology which are adopted to respond to demand uncertainty and the market competitive environment.