GATIC Guangzhou——Return To Core Competence, Restart Original Business

This article describes two historic events of CATIC guangzhou, its fail on diversifying, and its success on returning to core business. Strategic management principle and tools were used to analysis this two events. It is composed of two parts, which are 'Case study' and 'Case analysis'.In 'Case study', it describes the whole development course of CATIC guangzhou. It emphasizes on the following events of CATIC guangzhou: its fail on diversifying, its circumstances of being on edge of bankruptcy in 1997, and its success on strategic management decision and implementing strategy of returning to core business since 1998.In 'Case analysis', Strategic management principle and tools were used to analysis why CATIC guangzhou failed on diversifying, and why it success at returning to core business. The principle and tools are: 'When to Diversify','Identifying the Present Corporate Strategy', 'Strategic-Fit Analysis' , 'Resource Fit Analysis' , 'Using a Nine-Cell Matrix to Simultaneously Portray Industry Attractiveness and Competitive Strength' , 'the Industry's Dominant Economic Features' , 'Michael E. Porter, How Competitive Forces Shape Strategy', 'SWOT Analysis'.