Research On Tianjin Port’s Iron Ore Business Development Strategy

In recent years, with the sustainable development of the national economy and accelerated process of industrialization, the steel production continued growing in China. As the most important raw material of the steel industry, the demand of iron ore was also increasing continuously. Although the amount of mineral resources is abundant in China, the average grade is still low and the mining cost is also high.So domestic iron ore can’t meet the need of the steel industry now.We still need numerous imported iron ore. With the high dependence on domestic iron ore, the iron ore trade market had rose for a long period of time. As the important part of Bohai,Tianjin port’s Iron ore has become its pillar goods category. But in recent years, with the change of the markets and the policy environment, a fluctuation has happened in Tianjin port’s iron ore business. A lot of issues have become more apparent.In addition, since the integration of Beijing,Tianjin and Hebei, the competition with other ports in Bohai has become more intense. Other ports divide a part of the iron ore resources of Tianjin port. Tianjin port’s iron ore business is facing a more complex and severe environment.Facing with the new strategic environment, port enterprises need to develop more strategic research.Making a right strategy is the fundamental need for an enterprise’s development. A correct development strategy not only has a certain reference value for iron ore business, but also has a practical significance for integration of resources,enhance of the business capacity and improment of market competitiveness for Tianjin port’s iron ore business.Based on the theory of strategic management, the paper analyzes the strategic environment of iron ore business firstly, including external and internal environment. Secondly, the paper makes a SWOT analysis, listing advantages and disadvantages, opportunities and threats. In order to make a better development strategy,the paper makes a prediction for future iron ore throughput of Tianjin port.On the basis of the strategic environment analysis and the prediction,the paper selects the cost leadership strategy.Finally,the paper makes a development strategy plan of Tianjin port iron business and makes the security measures of implementation.