The Research On The Competitive Strategy Of CQS Designing Institute

Engineering Consulting Industry(or ECI) is a traditional intelligence -intensive and knowledge-intensive serving industry, it has played an important role in China's economic construction, especially in the aspect like supporting for proper making-decision, avoiding mistakes, optimizing construction planning, shortening construction period, reduction cost, improving project quality. Compared with the developed countries, China's ECI is more laggard, but developing faster and has huge potential. After China being a member of WTO, more and more famous ECI companies from western countries are entering Chines market, which poses great pressure to domestic companies which are changing from planning-economy to market-economy. CQS is ongoing such a critic period.On the one hand it is facing the low-price competition from home rivals, on the other hand it has to fight against overseas ECI companies with the advantages on capital, technology and management. At such a turning point, the company should re-exame competitive environment from the strategic angle and analyze its problems. To gain a continuos development, the only way is to make right strategic decision and establish and maintain competitive edge.This paper applies the theories about strategy, competitive strategy and marketing strategy to analyse the strategy-making and strategy-implementation of CQS.The thesis begins from the reviewing and summering the theories of strategy and competitive strategy in order to set up a framework for strategy-making. Secondly, research has been done from two sides- environment and organization. The exterior envirement factors include politics, economy, society , culture and technology. Then analysis focuses on CQS's competitive environment in local market with a Five-Forces model. In the aspect about organizational factors, detailed anatomy has been done with the Value-Chain model and VRIO framework. Thirdly, based on the above examination, the important opportunities and threats have been identified as well as the company's strengths and weaknesses ,then proposes a focus-differentiation strategy.Further more the marketing strategy is adopted to carry out the competitive strategy to pass the valuable uniqueness to customers. Finally, HR and organizational structure should also be adjusted to support the marketing strategy.The conclusion are: â‘  ECI is lack of the base for cost-leadership strategy. At the same time, CQS has the advantages such as excellent fame, powerful technical base and familiarity with the local humanity, geography and economy. So it is recommended CQS adopt focus-differentiation strategy. â‘¡ Marketing strategy sets up a bridge between market and the product, it makes the company focus totally on market to create and pass the value.