Business Strategies Research On Oil Film Bearing Business Of Taiyuan Heavy

As a large state-owned enterprise, Taiyuan Heavy is the first listed company of the heavy machinery industry and is known as "National Treasure" and "Pioneer of the National Economy". Main products of company are lifting equipment, steel rolling equipment, forging equipment, mining equipment, coke oven equipment, coal chemical equipment, wind power generation equipment, oil film bearings, gears, railroad axles, castings and forgings, and so on. Furthermore, TZ oil film bearing is a high-quality brand product with independent intellectual property rights, is of great significance for ending the history of importation and balancing the metallurgical industry in the world. Although TZ oil film bearing was innovated on the basis of American technology, it also provided facilities for internationalization. Taiyuan Heavy conducted a large-scale transformation in 2000 and became the largest bearing film manufacturer in the world, in the nowadays its market share has exceeded 80%.Along with the complicated international economic situation and a staggering increase in domestic economy, steel market in China is gradually weakening, Taiyuan Heavy closely related to steel market is also deeply affected. In the domestic market, in the countryside 154 steel production lines of 79 steel mills has used oil film bearings, but with excess steel production capacity new projects relying on investment will not be constructed. The situation will not be changed within five years. In addition, some foreign companies has invested factories in China, new products will lead to a greater impact on product price and market share of Taiyuan Heavy. In the international market, TZ oil film bearing of Taiyuan Heavy can be exported to fifteen countries and regions, but Taiyuan Heavy must face with patent barriers of foreign manufacturers. Taiyuan Heavy currently only with the help of brokers obtains a limited amount of orders for oil film bearing spare parts.In the first of all, the paper reviews the development status of domestic and foreign oil film bearing technology, and introduces relevant strategies analysis tools. Secondly, the paper analyses the macro environment and industry environment by means of PEST analysis model and Porter's five forces competition model. Thirdly, the paper analyzes its financial capability, marketing capability, organizational management and production management capabilities, based on the introduction of its development process. And the paper establishes SWOT matrix combined with opportunities and threats of external environment, strengths and weaknesses of internal environment. Fourthly, the paper proposes business strategies Taiyuan Heavy should choose. In the overall strategic level, Taiyuan Heavy should form a strategic alliance to enter emerging international markets. In competitive strategic level, Taiyuan Heavy should choose cost leadership strategy and service differentiation strategies. In the functional strategy level, Taiyuan Heavy should re-positioned markets, build rational human resource plans, and reduce financing cost. Finally, in the implementation of strategies, Taiyuan Heavy should establish a flat organizational structure, and remodel enterprise culture adapting to international business strategy.