| The report firstly analyzed the external environment of Shandong Highway & Bridge Group (SHBG) from two levels. The first level, factors as macroeconomic conditions, national policies, reform of state-owned enterprises and China's accession to WTO have been giving the highway construction enterprises more opportunities than challenges. The second level, inner characteristics of highway construction industry, such as, developing trend, opportunities, etc, were analyzed. Especially, Porter's 5-Force Model was used while analyzing the competition extents. It was concluded that there would be fiercer competition in the future; the Middle and West Part of China would provide more opportunities; price, achievements and experiences, capital strengths, qualifications would be the key factors in achieving success. Secondly, the report analyzed the current strategic situation and different resources owned by the Group. The following conclusions were drawn: SHBG has higher competitive power within Shandong Province while in the whole country,it is just in the middle level.Based on the above analyses, a synthesis analysis of SWOT was made which pointed out the advantages and disadvantages of SHBG. According the results, some proposals about group's strategy and tactics were put forward.
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