Chengdu Railway Bureau Supplies Industry Corporation Reform Development Strategy

Chengdu Railway Materials Industrial Corporation (hereinafter referred as CRMIC), an affiliate company of Chengdu Railway Group, has operated for many years in the planning economy. With the reform of Socialistic Market Economy deepening, there appear more and more problems such as lack of efficiency and vitality. This paper tries to analyze the problems existing in CRMIC and find out reliable and practical solutions to them. There are four parts in this paper. Part One presents the background knowledge for further analysis, for example, the business history of CRMIC and the status quo. SWOT analysis of Chengdu Railway Materials Industrial Corporation is carried out in Part Two. The author thinks that the main problems lie in enterprise structure, operation philosophy, marketing strategy and so on. By means of SWOT analysis, this paper comes to the conclusion that there are more threats than opportunities, more weaknesses than strengths as far as Chengdu Railway Materials Industrial Corporation is concerned. Therefore, where is the way out? The only answer is to reform both in enterprise structure and operation philosophy. On the basis of SWOT analysis, Part Three puts forward a few proposals for CRMIC's choice of development strategies. Moreover, this paper presents the following suggestions: First of all, Chengdu Railway Materials Industrial Corporation has to establish the modern enterprise system, which is the prerequisite for further reform. Second, restructuring Chengdu Railway Materials Industrial Corporation and developing the market outside Chengdu Railway Group. Third, building up the competitive advantages and core competencies. Part Four discusses how to implement the reform and development strategies of Chengdu Railway Materials Industrial Corporation and what kind of necessary methods have to be taken. There are two stages for the reform of Chengdu Railway Materials Industrial Corporation: The first stage is to reform the management system and the operation structure; the second stage is that CRMIC puts its emphasis on technical innovation, business innovation and management innovation, thus strengthening its core competencies. In order to implement the development strategies effectively, the author puts forward several proposals in terms of new product development, marketing management, financial management, human resource management, etc. In a word, all the problems above come from the transition from the planning economy to the Socialistic market economy. Therefore, in order to solve these problems completely, Chengdu Railway Materials Industrial Corporation has to learn how to do businesses in the market economy.