长兴船厂基于价值链分析的竞争战略研究

Chapter I．Introduction

1.1 Research Background

Shipbuilding  industry  is  an  important  part  of  China's  national  economy,  China's market share in the world's shipbuilding industry has gradually surpassed South Korea and Japan, towards the goal of world shipbuilding power country. But in recent years, affected by the global shipping market sluggish, oil prices continued to fall, the new ship orders undertake by our country fell sharply, the market for marine engineering had shrunk significantly.

In the first half of 2015, the completion deadweight tonnage of national shipbuilding is 1853 million, rose by 6.3% compared with the same period last year, among which ships correction gross tonnage is 637 million; The deadweight tonnage of new ship orders undertake is 1119 million, declined by 72.6% compared to the same period last year,  among  which  ships correction  gross  tonnage  is  413  million.  Although  the completion of the domestic shipbuilding tonnage has increased during the first half of 2015, but the number of new orders has dropped sharply over 70%.

In order to increase new orders and maintain the original order, many shipbuilding enterprises  have  to  cut  price  to maintain  market  competitiveness,  continuous compression of profits and homogenization of vicious competition, resulting in the death cycle of the shipbuilding enterprises selves operation: death because of lost if receive the order and wait to death if no receive the order.

There is a certain gap compared with the world’s advanced level in the new field of independent  research  and development,  equipments  support,  system  integration, marine  engineering,  luxury  cruise  design  and  construction and  other  fields.   Low cost advantage is gradually weakening.

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1.2 Research Problems

Based on the actual situation of the shipbuilding industry, the three major problems of the  difficulty  for  taking  the order,  the  difficulty  for  delivering  the  vessel  and  the difficulty for financing had exacerbated the plight of the shipbuilding industry. With the  continued  decline  in  prices,  prices  seriously  deviate  from  the  value,  the shipbuilding enterprises had no profit at all and is increasingly sluggish. The tighten credit lines from the banks, the delay payment from the ship owner, the operations problems from the shipbuilding enterprises themselves, etc., are the reasons of letting the shipbuilding enterprises to enter into the winter.

In  the  face  of  this  kind  of  environment,  what  kind  of  competitive  strategy  which should  be  adopted  by  our country's  shipbuilding  enterprises  would  have  a  direct impact on the development of China's shipbuilding industry. 

Only  to  accelerate  the  transformation  and  upgrading,  development  of  intelligent manufacturing,  reduce  costs, improve  production  efficiency  and  increase  R  &  D investment,  to  allow  the  shipbuilding  enterprises  to  embark on  a  new  era  of development path, not to shoot dead on the beach. Especially under the “One Belt and One  Road” the  country  rare  strategic  opportunity,  shipbuilding  enterprises  should accelerate the transformation and speed upgrade footsteps, continue to implement and improve the low cost competitive strategy, to seek long-term development.

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Chapter II Literature Review

2.1 Core Concept Clarification

2.1.1 Strategy Enterprise

Strategy  is  a  top-down  process  of  the  overall  planning,  and  it  can  be divided  into several aspects, such as corporate strategy, function strategy, business strategy, product strategy and so on.

Enterprise strategy is a general term for a variety of strategies, including competitive strategy,  also  including marketing  strategy,  development  strategy,  brand  strategy, financing  strategy,  technology  development strategy,talent  development  strategy, resource development strategy, and so on. Enterprise strategy is emerging, such as information technology is a new strategy. Although there are a variety of enterprise strategies, but the basic attributes are the same, is the strategy of the enterprise, is a strategy for the overall, long-term, basic issues of the enterprise. For example: the enterprise  competition  strategy  is  the  strategy  to  the  enterprise  competition,  is  a strategy  for  the enterprise  to  compete  for  the  integrity,  long-term,  basic  issues. Enterprise  marketing  strategy  is  the  strategy of marketing,  is  a  strategy  for  the enterprise  marketing  integrity,  long-term,  basic  issues.  Enterprise  technology development strategy is a strategy for the development of enterprise technology, is a strategy forthe overall, long-term, basic issues of enterprise technology development. Enterprise talent strategy is the strategy for the development of enterprise talent, is the enterprise talent development of the overall, long-term, basic issues of strategy. And so on, are all the same. Each enterprise strategy has the same also different, the same is the basic attribute, the difference is the level of planning problems and perspectives. In  short,  regardless  of  which  aspect  of  the  strategy,  as  long  as  the enterprise  is involved in the overall, long-term, basic issues, it belongs to the category of corporate strategy.

When a company successfully developed and implemented the creation value of the strategy, it is able to obtain strategic competitiveness.

A  strategy  is  designed  to  develop  the  core  competitiveness, to obtain  competitive advantage of a series of integrated, coordinated agreement and action. If choose a strategy, the company has made the choice in the different competition way. In this sense, the strategic choice shows what the company is going to do, and what not to do.

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2.2 Relevant Literature

Michael  Potter  first  proposed  the  industrial  position  of  the  enterprise  in  the "competitive strategy" (1980). Optional competitive strategy includes cost leadership strategy,  differentiation  strategy  and  target  concentration  strategy. Potter  follow-up work "competitive advantage" (1985), the research on how to establish and maintain its competitive advantage, the theory of cost strategy has been enriched and developed. At present, there are two aspects of the research on the relationship between the cost strategy balance, cost strategy driving factor and the performance relationship. 

Research on Cost Strategy Balance

Since Michael Potter proposed three basic cost strategies, there has always been acontroversy  over  the  issue  of compatibility  between  strategic  choice  and  strategy. Many scholars have a negative attitude to balance opinions of the cost leadership and differentiation  strategy.  Jones  and  Butler  (1988)’  research  found  that  the  cost leadership  and differentiation  strategy  is  not  completely  opposite,  just  a  different degree. They divide the enterprise cost into manufacturing cost and transaction cost. when the two are included in the same strategic analysis system, When the enterprise implements the strategy of differentiation, the cost of the transaction and the cost of manufacturing is the lowest and achieve the cost leadership during the achievement of differentiation strategy.

Hill (1988) believes that the adoption of differentiation strategy can be used as a way to achieve cost leadership in the competition, in many cases, companies can establish a lasting competitive advantage through the simultaneous pursuit of differentiation and cost leadership.

W - Money -Gold and Renee and Mauborgne (2005) doubt the views of the balance between the value of the product and the cost, they believe that by increasing and creating some of the value elements that are not provided by the existing industries, and eliminate and reduce the industry's existing value elements, the enterprise may also pursue differentiation and cost leadership, that is, the lower cost to provide the buyer with the value of a breakthrough.

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Chapter III Case Description......................17

3.1 Company Profile ......................17

3.2 Challenges Facing.............18

Chapter IV Case Analysis ....................20

4.1 Analysis on Shipbuilding Industry................20

4.1.1 Macro Environment Analysis ................. 20

4.1.2 Industrial Environment Analysis..................... 24

Chapter V Suggestions....................66

5.1 Strategy Optimization...................66

5.1.1 Strengthen the Weak Links of Value Chain Cost Control ................. 66

5.1.2 Reconstruction and Evaluation of Value Chain.............. 70

5.1.3 Process Improvement...................... 71

Chapter V Suggestions

5.1 Strategy Optimization

5.1.1 Strengthen the Weak Links of Value Chain Cost Control

After many years of development and renewal, the current value chain of Ever Grow Shipyard has  made a great progress in the implementation of the low cost ability, through the product competition in the market can be seen. Generally speaking, the regular competitive company carry the competition according to the market rules, the product price in Ever Grow Shipyard has not been seriously threatened, the cost level of  Ever  Grow  Shipyard  compared  with other  private  institutions  and  state-owned company  has  been  in  a  very  favorable  position,  but  this  does  not mean  that  the company's cost has reached the best level, if Ever Grow Shipyard attempt to achieve business growth market expansion through low cost advantage, Ever Grow Shipyard's cost must be further reduced, and from the analysis of the current value chain, some cost  control  of  Ever  Grow  Shipyard's  value  chain  still  exist  weak  link, need  to improve. 

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Chapter VI Conclusion and Research Prospects

6. 1 Research Prospects

6.1.1 Information System and Value Chain

With the development of information technology, information systems are becoming important competitive tools for enterprises gradually, and information technology is closely linked with the competitive advantage. Today, many industries, businesses and government  organizations  adopt  information  systems  to  improve  efficiency  and decision-making. For the low cost competitive strategy of Ever Grow Shipyard, the information system application will effectively promote the realization of the strategic objectives. 

In the operation of the value chain, the logistics, capital flow and information flow form the three major mobile media of value chain, for the implementation of low cost competitive strategy, the most influential and difficult control is the information flow. First  in  Ever  Grow  Shipyard  value  chain,  information  as  an  asset,  there  is  no standardized confirmation  and  management,  lack  adequate  knowledge  for  what  is information,  how  do  information  exchange, how  the  information  create  value. Secondly,  lack  clear  understanding  for  the  relationship  between  the information, efficiency and cost, a lot of people still remain in the doubt stage of the information technology. Therefore it could be said that the value chain of Ever Grow Shipyard is a traditional  value  chain.  If  use  information  system introduction  and  application  to promote the management of various value activities, the low cost competitive strategy implementation  would  bring  a  strong  role  in  promoting.  For  example,  with  the information system, Ever Grow Shipyard can build the product cost database, the cost improved  area  could  demonstrate  in  front  of  the  manager clearly.  Also  use  the electronic business mode to let the value chain internal connection to become more smooth  and simple  through the  comprehensive  and  quick  information.  It  can  also strengthen the materials plan management, so that the company's inventory could be effectively controlled, so improve the utilization of funds. The value chain which be involved  by  information  system  become  increasingly  digital,  and  this  has  a  direct guidance to the low cost of the breakthrough. In thepast, Ever Grow Shipyard need to spend a few days for checking the inventory, and the dynamic changes of inventory show nothing for the information system, the materials plans are always based on the experience  of  production  management  personnel. 

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