Research On Internationalization Development Strategy Of A Seamless Steel Pipe Company

With the global industry's transformation and upgrading,structure of iron and steel industry has changed greatly.Through cross-border mergers and business reforming,the world's leading seamless steel pipe companies optimized their global lay-out to further improve their industrial competitiveness and to form the industry monopoly finally.As the main domestic seamless steel pipe manufacturer,A Company,besides satisfying the demand of domestic market,has also begun its international business stage in order to evade trade barrier and develop international market.Based on the theory of strategy management,through analysis on actual condition and operation environment,the paper studied and put forward internationalization development strategy for A Company.Firstly,the paper analyzes the Company's external environment including trade barriers,market monopolies,environment restriction,new technology and product pressure with PEST method.Secondly,through analysis on industry environment with Michael Porter's Five Forces Model,the Company understands well threat coming from both current and potential competitors.Thirdly,the paper analyzes strengths,weakness,opportunity and threat for A Company during its transnational business using the SWOT analytical method.Finally,based on the analysis results of the internal&external environment,the paper has established the strategy objectives for the Company i.e.by virtue of existing equipment,technology and fund to develop new market and try to build a steel pipe company of global competitiveness.The paper also proposed that the Company shall implement the development strategy of horizontal expansion and the competition strategy mainly based on low cost and market segment.Meanwhile,the paper also analyzes necessary supporting measures including human resources,enterprise culture,internal control,project management,brand building and marketing network for internationalization strategy.This paper is not only a useful supplement for research on transnational business strategy for domestic seamless steel pipe company,but also can be used as a theoretical reference for our other large enterprises to implement "Based on the world" strategy during period of "The thirteenth Five-Year session.