Research On The Path Of Business Upgrading Of Z Company

Deepening the reform of state-owned company has become an important task for the sustainable development of state-owned company in this new era.With the relocation and reconstruction or transformation of state-owned urban steel companies,a number of small and medium-sized companies closely related to urban steel plant production have lost their original market,and their production and operation have fallen into trouble,becoming difficult enterprises or "zombie enterprises".Z Company is a wholly-owned subsidiary to Hangzhou Iron and Steel Group,which is in charge of production power supply and administration of Banshan base.In 2015,with the shut down of Banshan base,Z company lost the most important market and could only find its way to development through strategic upgrading of business.Therefore,it is of theoretical and practical significance to research and discuss how these small and medium-sized companies,faced with government regulation and market pressure,can scientifically grasp market dynamics and timely adjust development direction and business path to maintain competitiveness and achieve sustainable development.Based on the literature research,this paper takes Z company’s business upgrade path as the research content,through the company data research and internal observation,deeply analyzes the Z company’s operating environment,proposes the company upgrade path with professional technology servitization,meanwhile useing analysis tools such as GE matrix to propose suggestions for each business upgrade path and implementation guarantee.This paper argues that Z company is in the development bottleneck period of unclear development direction,weak technology ability,backward institutional mechanism,and limited funding source.The company should first promote management reform,introduce new technologies,then enhance marketing management,improve technology research and development,and finally extend to the industrial chain to achieve professional technology servitization upgrades.Among the four businesses,The water&electricity supply business should upgrad to servitization,improve the technical level and service capacity,maintain a small market share.The electromechanical assembly&maintenance business should improve the professional capabilities,accumulate engineering performance and qualifications,build a talented echelon,and gradually expand market share.The inspection&testing business should maintain a high-quality service level,deepen the market segment,and gradually develop its own brand.The energy supply&sale business should continue to maintain its investment and seek to expand on the basis of protecting its current market position and customer resources.The company should also improve their ability to adapt to market,technical strength and service to ensure the smooth implementation of the strategy.This paper believes that when faced with the development dilemma,state-owned small and medium-sized enterprises can find the target market and their own positioning in the direction of productive servitization.By focusing on improving the technical level and management ability,the company will gradually promote the sustainable development with the upgrade of business.