||The Chinese steel industry has entered the age of oversupply. In 2015, the total amount of weight produced in China added up to 804 million metric tons while the consumption of steel declined to merely a level of 686 million metric tons. The overproduction of more than 100 million metric tons can only be exported to the other countries in Asia at a low price, which severely disturbs the order of the regional steel market. Industries which fall into the price war can only try to survive by means of mass producing and cheap selling but often end up with even severer deficits. Over-production, over-supply, and a lack of product-differentiation market have become issues for the global steel market and challenges to all enterprise managers. It is of top priority to find a way out of the hard times. Technical marketing, which creates customer values, and key success factor identifying is a break-through and promising solution.|
In this paper, key success factor (KSF) and analytic hierarchy process (AHP) are used to analyze the operation mode of technical marketing of the steel industry to specify the key success factors in technical marketing. Michael Porter's Value Chain Model from his famous work “Competitive Advantage, 1985” is also used to investigate application conditions of cross-industry alliance and vertical-integration of supply chain. A study and a solution on technical marketing are also proposed and the effectiveness of the grand alliance is verified. Qualitative analysis is used to analyze the steel industries in China, Japan, and Taiwan and furthermore to study the downstream steel users, such as steel structure manufacturers, automobile parts manufacturers and trading companies.Thirteen experts from seven companies are interviewed in depth. A quantity analysis in the form of questionnaire is performed to survey 12 members consisting of domestic and overseas technical service engineers and their supervisors.
Through this research, a total-stage & multi-phase operation mode of technical marketing in the steel industry is summarized. The industry environment is proved to be a key success factor with an attribute weight of 42.1%. It is worthy of notice that among the factors of the all-level evaluation, industrial alliance is the most influential factor with an attribute weight of 17.7%. It reveals the fact that the competition among the global steel industry has evolved to industry-chain level and the old competing mode of fighting alone which domestic industries used to take does not work anymore. In this paper, in addition to the analysis of key success factors, a solution is also introduced and verified to provide a strategic structure and a practical action plan of technical marketing for enterprise managers. Based on technology, a new application which combines marketing manufacturing, channeling and branding is proposed to realize the industrial grand alliance as a reference for decision-making in order to strengthen industrial competitiveness. CSC, CSD, and BBI worked together and integrated 8 excellent hand tool makers to form the “hand tool grand alliance.” In July 2015, the number of customers which started sales of BBI’s products with the brand name of “Proferred,” has grown up to 682. Except for the 8 starting members of the alliance, another 6 more have joined and now a variety of hand tool products up to 14 items are being supplied. Daily turnover of the alliance has grown up to USD 4,000 since Sep, 2015 and the total order amount up to Mar , 2016 hit USD 630,000. In Apr 27, 2016, “Taiwan’s excellent hand tools development association” has been set up and incorporated in order to make sure of the operation of the hand tool grand alliance.