Research On Development Strategy Of HG Groups Co.,Ltd

Steel industry is an important industry in China`s industrial layout and plays a very important role in China`s economic and social development.The level of steel industry is a measure of a country`s industry development.With the rapid development of economy,new technology has become more and more widely used.At the same time,the number of new enterprises is increasing,with the scale of the enterprise keeping expanding.While the industry is developing rapidly,its drawbacks are becoming more and more remarkable,such as the increase of labor costs and the number of iron and steel manufacturers,the harsher competition in the market.Thus,for HG Groups Co.,Ltd,it is necessary to constantly adjust its own development strategy to improve the market competitiveness and better carry out the relevant market competition activies.HG Groups Co.,Ltd should improve their own strategic management.Strategic management plays a very important role in the development of China`s enterprises.An enterprise want to be able to survive and develop in the market competition it should make full use of the thinking mode of strategic management to judge the development trend.Therefore,in the current fierce market competition,HG Groups Co.,Ltd must change its own management ideas.This paper takes HG Groups Co.,Ltd as the research object and analyzes the external environment of the enterprise from such four aspects as political environment,economic environment,social environment and technical environment.And based on the “Michael Porter`s Five Forces Model”,analyzes the industry`s competitive environment in the following five aspects: the enterprise`s supplier,the potential entrants,the existing competitors,the replacements and the purchasers.According to the actual situation of HG Groups Co.,Ltd and by the use of SWOT analysis,the SO strategy of an enterprise is obtained.According to the results of the analysis,HG Groups Co.,Ltd needs to promote the enterprise`s development strategy form the aspects of financial management,human resource management,operations management,R&D and organizational culture.It is hoped that the research results will be able to provide the decision support in strategic management for HG Groups Co.,Ltd and even other similar enterprises.