Analysis for Export Trade of Steel Market Environment

Nowadays, companies in the Chinese steel market are in the face of difficulties because of certain policies and the special environment in this market. The policy that makes a huge difference in the market is the cancellation of export rebates. This essay will analyze the impact of this new policy and the environment of this market using the PEST model. The essay exemplifies a company called Jinan Haofeng Import & Export Co., Ltd. in the market to do such analysis. With the analysis of this company, the problem that led the company to such a difficult situation will be found out and solved. The last part of the essay will show the solution to this problem by using competitive strategies, including differentiation, overall cost leadership, and focus strategies. The analysis can help to exclude the differentiation and the overall cost leadership strategies because of the economic and political factors in the PEST model. The focus strategy can help solve the problem. The company needs to stay focused on advancing the technology for producing the steel coil. In this way, the company can stay at its break-even point instead of shutting down in the long run.