The Research On The Development Strategy Of Guangxin Asphalt Company Ltd

The operation of Shanghai - Jiading expressway in 1988 was considered to be the starting point of China's building highways. Then in 1998, the nation's implementing active fiscal policy has enhanced the investment of infrastructure, especially in the area of highroads construction, which was a symbol of highway constructions to enter rapid development period. At the end of year 2008, Chinese government applied a package of investment plan with four thousand billion yuan aiming to resist the global financial crisis, 1.5 thousand billion yuan of which floated to transportation infrastructure. Since then, the highway construction in China came into a fast-developing era with tremendous amount of asphalts in need. That is why we consider it great opportunities for asphalt industry development.Established in 1999 as a state owned stock company, Guangxin Asphalt Company Ltd has made great progress in the past decade and witnessed the rapid development of highway construction in Guangdong Province. For the past two decades since its establishment, the company has gone through all-round development with its business segments including the marketing of heavy asphalt, the production of modified asphalt, the application of NovaChip Ultra-thin wearing course asphalt technology, the production of asphalt concrete, as well as technical research and introduction of new technology. The enterprise is now recognized as the leading company in Guangdong's asphalt business, enjoying high reputation and ranking among the largest of the market share.This essay is about how Guangxin Company Ltd seizes opportunities, sets up new developing strategies and realizes sustainable development strategy in a new competed market environment. The first part of the article introduces the present situation of Guangxin Company Ltd. Following PEST Analysis Method and Michael Porter's Five Forces Model are applied to assay enterprise's internal and external environment factors in the macro-environment and industry environment levels. Thus, the opportunities and threats in outer environment will be clarified. In addition, the study also approaches Core-Competence Theory, Michael Porter's Value Chain Model and Inter Factor Evaluation Matrix to analyze the internal environment factors of Guangxin Asphalt Company, such as the corporation resource, capacity and core-competence, so as to define the main competitive advantage and weakness, redefine the enterprise's mission, and specifies the enterprise strategy goal. Next, the essay applies SWOT Matrix—strength, weakness, opportunity and threats, to analyze and set up Enterprise's Development Strategy. In the conclusion part, stages application proposal and practice measure will be given out.