The Research Of Baosteel Group For Solution Strategy Facing Steel Industry Overcapacity

China’s steel industry gained fast development in the past 30 years as the demands of steel from industries such as infrastructure,real estate and energy kept strong.The supply of steel products exceeded the demand heavily whereas the supply of steel could not meet the demand before reform and open policy,leading to a sharp overcapacity.The overcapacity of steel industry is now influencing China’s economy.The capital,resource,and energy is used at a low efficiency for the overcapacity.Therefore,it’s high time to solve steel overcapacity problem.Baosteel Group has been the most influential and competitive enterprise in China since it was established in the 1980 s.Even so,Baosteel has to face the challenge of overcapacity.In this thesis,the strengths and weaknesses of Baosteel,the opportunities and threats from outside are discussed.Furthermore,under the help of Boston matrix,Baosteel’s main products and market share is also analyzed.It is suggested that Baosteel should insist High-quality strategy and develop its new production base.Meanwhile,Baosteel should expand its scale via merger and acquisition,develop overseas market and gain more resource opportunities.Baosteel’s experience to deal with overcapacity will set example to other steel enterprise and influence the policy makers.