Research On The Competitive Strategy Of MK Company’s Pipeline Business

MK company was established in 2013 and is a listed company initiated by MD Group.Pipeline business is the most important and core business of MK company.The implementation of major strategies such as the "Belt and Road Initiative" and new urbanization construction has brought huge dividends to the development of the pipeline industry.After years of development,China has become the world’s largest producer of steel pipes,both in terms of type and quality,and some technological levels have reached the world’s advanced level.However,in recent years,the global economic turmoil and the escalation of trade friction have hindered the export of products.In particular,since the outbreak of COVID-19,the downward pressure on the domestic economy has increased,and the price of raw materials has fluctuated greatly,which has led to the continuous increase of the operating costs of enterprises,and the development is facing great pressure.Under this background,the research and effective implementation of pipeline business competition strategy have become the inevitable requirement for MK company to seek long-term survival and development.This thesis takes pipeline business of MK company as the research object,and mainly adopts two research methods:literature research method and field research method.Firstly,it sorts out and analyzes the macro environment and industrial environment of the steel pipe industry,and draws out the opportunities and threats faced by MK company.The opportunities mainly include the acceleration of new urbanization construction,the implementation of pipeline renovation projects,the inclusion of pipeline products in the national "encouraged" product catalog,the Belt and Road Initiative,etc.The main threats are international trade friction,the spread of COVID-19,the price rise of raw materials,and the cancellation of export tax rebates for steel products,etc.Then,it summarizes the advantages and disadvantages through the analyzation of the internal environment of MK company.This thesis believes that the advantages of MK company include:pipeline joint products are in a leading position in the same industry,strong fine operation ability,outstanding production transformation and product research and development capabilities,good financial status,etc.The disadvantages mainly include insufficient product type,lack of highly educated technical personnel,difficulty in introducing excellent talents,and weak brand competitiveness.Secondly,the EFE and IFE matrices are used to comprehensively and quantitatively evaluate the key influencing factors of the internal and external environment.Finally,through the SWOT and QSPM matrices,the competitive strategy of MK company is proposed.This thesis believes that under the current internal and external environment,MK company should adopt the strategy of overall cost leadership,and the specific measures that should be taken include strengthening procurement business management and reducing raw material procurement costs;accelerating the application of digital technology and reducing production management costs;combination of online and offline marketing and reduction about marketing and promotion costs;consolidating and expanding advantages of production capacity for scale effects;integrating pipeline solutions and establishing comprehensive cost advantages,etc.In order to ensure the smooth implementation of the competitive strategy,MK company should also provide safeguards in brand building,organizational structure,human resources management,salary system and cultural construction.This thesis hopes that through the analysis of the competition strategy of MK company,it can help the company keep the overseas market and expand the domestic market and has made great progress.