China Railway 12th Bureau Group Development Strategy

Over the years, China Railway 12th Bureau Group have maintaineda leading position in the market in the road and rail construction there,and have a definite advantage in the aspect of revenue, profits andrevenue growth speed. The company is cultivating and developing theircore competence to create competitive advantage, but this advantage isnot obvious. But in the increasingly fierce market competitionenvironment, China Railway 12 Bureau Group is also faced with thethreat of domestic and foreign competitors and the challenges of theknowledge-based economy era, such threats and challenges will beintensified. How to maintain the leading position in the new century, andhow to become internationally competitive large company throughsustained and stable development in international competition, it isnecessary and urgency to have a practical strategy for its development.This paper based on the theory of competitive strategy, and use theanalytical tools and models which are related to the strategic management.Analyze the company's external environment and internal resourcesability with a SWOT analysis method, analyze the company's existingbusiness competitive structure with Porter's five forces model, locate thebusiness and its product position using GE Matrix and Boston Matrix.First, this paper conduct a detailed study for external environmentand internal resources capabilities of China Railway 12th Bureau Group,Summed up the opportunities and threats which company faced, and theadvantages and disadvantages which exist in company, analyzed the current developing situation and the competitive structure of business.Then it located position of company's mission and operations, andformulated company's overall strategic objectives system in the future.Then, under the guidance of the overall strategy, it study its developmentstrategy from three aspects of business development goals, productpositioning or function positioning and competitive strategy action.Finally in order to implement and support the company's overall strategyand business development strategy, planed the corresponding securitymeasures from the management field of the human resources, financialmanagement, technology research and development and marketingfunctions.