A Research Of Strategy Of Changchun Railway Vehicles Co., Ltd

Changchun Railway Vehicles Co., Ltd (hereinafter CRC) was established onMay 1, 2002 and it is derived and came in for the fine assets and major businessfrom Changchun Car Company, CRC is now one of the strongest enterprisesspecializing in railway mainline passenger vehicles and urban mass transit vehiclesin China, and leads a leading position in railway transportation industry. CRC hasbeen transformed from the manufacturing factory of Planned Economic Systems toa competition part of Market Economic Systems. The survival and development ofCRC is now challenged by the competition from the local and abroad railwaytransportation corporations. So to research the business strategies are critical tasksfor CRC.The Business Strategies Theory includes: research and analysis the meaning ofBusiness strategies, SWOT analytical method, PORTER Module, Businessmanagement capability analysis, etc.Opportunities that CRC faced: Bottleneck restriction of railway transportationhas been brought to the national top management's high attention, it is rather a finemacro-environment for the development of railway passenger vehiclesmanufactory; The national industrial policy supports the industry of railwaytransportation and urban mass transit development; The market has therequirements of railway passenger vehicle and this requirements trend to beincreasing; taking it into account that the cost and obstacles for ToT is being less,and the Ministry of Railway has nominated CRC to be one of the major localmanufacturers for the ToT from abroad, it means that CRC has grasped theopportunity to meet the international advanced technical level; the experiences ofurban mass transit and advantages of aluminum-alloy carbody and stainless steelcarbody manufacturing establish a solid base to make CRC the leading position inlocal market, and also CRC is getting more experiences in technical andinternational environment and ready to enlarge products export to the Third WorldCountry.Threats that CRC confronted: CRC cannot avoid market shares and pricescompetition from the same industry, especially the high-speed and high-graderailway passenger vehicle market, Sifang Company is our major competitor; Othernew approved local railway passenger vehicle production bases have their potentialadvantages, they can not only absorb the industry experiences, but also importforeign mature techniques under the support of national industrial policy. Thosecompanies have the characteristics of high-tech and high development speed, andthey are the major threaten to our 80% market shares of urban mass transit; thoseworld class companies can enter China market by means of joint venture,cooperation and transfer of techniques, and it will impact CRC's business. Theintense competition will decrease the profit-making capability of CRC, thesituation drives CRC to improve the management. The major strengths of CRC are:Having good market foreground with a welldesigned product structure; Having high mass product manufacturing capability,leading market shares, good reputation; Having comparatively high productdevelopment capability, having a good system to digest the advanced railway andurban mass transit passenger vehicle techniques, etc. CRC has a better financialstatus, good reputation, and good financing channel, list the company not only canresolve the financing problem, but also provide the company a large room fordevelopment, and impulse the company to integrate with the world market; As aleading company, CRC has the capability of gathering small enterprises workingfor her, it results in the high resources integration capability;CRC has a stablebases of management; and the established modern enterprise system provide anopportunity and ensure the company to improve its management level; CRC has awell-managed human resource system, as well as fine equipped plant, it allow CRCcan product different types of railway vehicles.;CRC has good company culture,and the employees have good learning capability and good competition spirit; thecore competition of CRC is represented by three aspects of technology, product andmarket. The major weaknesses of CRC are: Compared with the world-advancedtechniques, our design capability has much room to be improved, it cannot meet thesafety, advanced and mature requirements. Shortage of experts that master worldclass know-hows, and in marketing area there are still some concepts and actionsthat do not adapt to the Market Economics, like thinking too much of producer'smarket so that pay less attention on marketing with dated marketing concept andmeans; Although the new established modern enterprise system operates efficiently,the extensive management problems leaved from planned economy still not beresolved; Till now the company is not listed; lack of experts of internationalmarketing operation and modern management theory; and having no capability toexport product to medium advanced country; The export product cannot go to theinternational customer directly, it still need an agent to help. The concept of strategy is: To improve the railway transport capability is ourmajor task, follow in the wake of times, provide high quality railway vehicles andservice to meet the needs of society, and contribute to the cause of railway transport;Strive to introduce the world-advanced railway vehicle techniques, develop andbuild safety, comfortable, high speed, environment protection, and economicalproducts, research, absorb and communicate advanced design and manufactureconcept to lead the domestic railway vehicle industry; Always insist the advancedcore techniques to increase the competition capability of our product, maintain thecurrent and achieve more market shares, enlarge the export to the Third Worldcountry, and try to go into the Medium Advanced country market; Try our best tomake more profits to return our stockholder, government, employees, partner, andsociety, to establish a harmonious relationship with every aspect and build afavorable company image; Focus on the major business, training to increase thecompany innovation capability, people foremost, and concentrate our energy toachieve the big step development; To establish a first class domestically and worldknown modern company, to make CRC to be the sixth railway vehicle productionbase in the world, and to provide the stage for those who devote to the cause ofrailway vehicle to achieve his values. Strategy objectives system and its target values: The strategy objectivessystem comprises of product development and manufacture techniques,manufacture capability, sales revenue, market shares, financing, productionefficiency, product quality, human resource, organization management, companyobjectives, stockholder interest, social responsibility, etc. every objective has itsown target value and due date.