Research On Shandong HX Construction Engineering Co, Ltd. Competitive Strategy

Ready mixed concrete industry came into being in the 1980's in China. Economy has developed rapidly and the progress of city constructing has been accelerated with reform and open policy. In this instance, it is the first time for ready mixed concrete to show up in domestic market which has been used widely. Mechanization in ready mixed concrete's production is controlled by computer, which can upgrade the efficiency, improve engineering quality and avoid powder and noise pollution in construction site, so it's economic returns and social benefits is as plain as print. It brought about a big stride for China's traditional concrete production. As it is used in broader field, ready mixed concrete's advantage has been approved by the relevant state departments. Due to the support from the government, the market of ready mixed concrete has been developing rapidly in the recent 20 years. The whole industry witnessed the change from demand over supply to surplus production, and the fluctuation of industry integration because of enterprise operation troubles caused by vicious competition.ShanDong HX construction engineering Co., Ltd., is a small-scale private enterprise producing and marketing ready mixed concrete in HeZe, which was the first one in 2003. Both of the developing history of this company and the change of competition in local market reflect the general features of domestic ready mixed concrete industry. In 2003, as the forerunner of market, it met management difficulties because of poorly understanding the industry environment and self-ability and being short of specific strategic countermeasure for existing and coming competition. This paper will give a whole analysis and competitive strategy study for the enterprise to make it sustainable development and achieve advantage of competition.The paper, which is based on Porter Competitive Strategy Theory, will analyze outer environment, opportunities and menace with PEST Analysis, Potter Five Forces Model and SWOT Analysis. And competitive strategy of overall cost leadership is given as enterprise development strategy. With keen price competition among enterprises, the homogenization of ready mixed concrete production and good lower price negotiations of consumers, ShanDong HX engineering construction Co., Ltd., will succeed in competition using overall cost leadership strategy. In the last chapter of the paper, value chain within the enterprises is analyzed with Michael Porter's Value Chain Model based cost management firstly. Secondly, the main link needing lower cost is specified. Thirdly, value chain reconstruction is used for the procedures which effect value increase and go against the whole strategy implementation. Finally, specific reform measures are given, which are adopted by enterprises during implementing overall cost leadership strategy. All above aim to have the strategy smooth implementation.