Research On The Development Strategy Of China Railway Erju Group

China Railway Erju Group(CREG) is a huge state-operated enterprise, which has more than 50 years professional experience in civil engineering. The development of CREG faces both opportunity and challenge, in these days when the market is going so complex undergoing a myriad changes. A practical strategy which conforms to the external market and fits the inside reality became a key point to its active sustainable development. In consideration of this situation, this paper raises on the development stratagem of CREG.This paper carries out the theories and methods in management, especially in the management of enterprise development strategy, applying Michael ?E ?Porter's five forces analysis, SWOT analysis, product & operation assembled analysis.First,this paper gives the history and status of CREG, analyzes the inner factors, including combination of products, assets, financial situation, human resource and market segmentation SWOT analysis, finds out the core competence and available resources. Then, this paper analyzes the outer factors, points in the prospect of civil engineering industry. Finally, basing on the development strategy of state-owned civil engineering enterprises and comprehensive analysis on CREG itself and the surrounding, ensure the development strategy of focusing in the vertical integration of construction industry, adequate development of relevant diversified operation, and explaining the key issues of the implementation of the development strategy.This paper also discusses the effect that WTO entrance brings to the civil engineering enterprises and the way how they face the international competition. Describing the problems of the spin-off of state-owned construction companies in conducting social ability,with the limitation of state-owned enterprises especially the spin-off of enterprises established by central government in handling the social ability, which is highly related to state regulation. How to proceed in the implementation strategy is hard to speak out.