The Research Of The Competitive Strategy Of Xichang New Steel Limited Corporation Of Pangang Group In Financial Crisis

The global financial crisis triggered by the subprime crisis of America in2008hadcaused the global economy depression, the sharp-shrinking of the global trade volumeand the decreasing and stagnation of economy. Pangang Group has also beenseriously hit by this international financial crisis. But Xichang New Steel LimitedCorporation which is affiliated with Panggang Group was an exception. It was the firstenterprise who walked out of the global financial crisis， and became a relativelyhigh-profit industrial enterprise in Panxi district。Therefore studying and analyzing theoperational way and strategies by which the company tackled the financial crisis and bywhich its profit-making ability got better. I will analyze the company by using mygained competitiveness force theory and hope to explain the reason that thecompetiveness of the New Steel Corporation occurred in the phase of financial crisisand post financial crisis with the theory. In this essay I will explore the new trend of thecompetiveness force theory and analyze the strategies that the New Steel Corporationimproves its competiveness.The first chapter is the introduction which mainly discusses the background of theselection of this subject, the meaning, content and techniques of the study and themethod of research.In the second chapter, it summarizes the theory of competiveness in an enterprise.At the first of this chapter it explains the definition and characteristics of the enterprisecompetiveness. Then it introduces the origin of the enterprise competitiveness theory,the method of research, the related theory of enterprise competiveness and the dynamicand harmonious trend to which the enterprise competiveness theory will develop.The third chapter is the analysis of the New Steel Corporation’s businessenvironment. It analyses the company’s macroscopically environment, industrialenvironment, core value chain, specific strategy orientation and executing capacitybefore the global financial crisis and studies the company’s competing strategies byusing the method of PEST,five-force analysis and core chain analysis. The fourth chapter discusses the influences of the New Steel corporation‘s runningstrategies and analyses the policy and economy changes when the financial crisis comes.It also talks about the impact on the corporate industrial chain and core value chain. Inorder to tackle the financial crisis, corporations take advantages of their controllingcapacity to adjust to their competing strategies in time and adapt the strategy of ‘Limitthe profit of the manufacturer; Provide more profit room to the intermediate merchant’to the strategy of ‘provide more profit room to the manufacturer; Limit the profit roomof the intermediate merchant’ in order to reach a better company-running effect andimprove the capacity of dynamic competitiveness.The fifth chapter discusses the competing strategies. By analyzing the outer andinner environment it has drawn a conclusion that the reason the New Steel has astronger competiveness and better strategies is because it has a right and appropriatecompany-running idea as an instruction. It could reach the low-cost strategy by takingadvantages of the district superiority, optimizing the value chain and the dynamiccompany-running strategies. Adopting the specific measures of provide more profitroom to the manufacturer; Limit the profit room of the intermediate merchant; Lowerthe product price for the consumers and constantly innovating the system andtechnology in order to strengthen the company’s competiveness and make our companyto be one of the strongest competitive corporations.The sixth chapter is the conclusion.