Jinguang The Construction Of Two Companies, Competitive Strategy

The thesis researches into the environment of the medium-sized or pint-sized construction companies running, and to find out the competition advantages, to establish the competitive strategy. Guided by this competitive strategy the companies will keep on developing in a long-term.Nowadays, a lot of the construction companies have the same technology level. The competition of construction industry is very fierce. The employer defaulting brings the contractors little profit. Construction companies can't develop persistent. The medium-sized or pint-sized construction companies don't know which direction and what competitive strategy they ought to work at. This is a conditionality of these companies. To analyze the outside and inside environment of these companies and to find out the opportunities, threats, strengths, and weaknesses are significant work for them.The No.2 Subsidiary of Jinguang Construction Group has a large sum of account receivable. This means the company had to pay high opportunity cost. The parent company assess upon overhead expenses in the proportion of 13.5%. The parent company's loan carries high interest rate. All those matter expend the great mass of the subsidiary company's gross profit.The thesis draws a conclusion through the analysis. The No.2 Subsidiary Company must separate itself from the parent company. According to this strategy, the No.2 Subsidiary Company may avoid the parent company assessing upon overhead expenses and high interest rate. The No.2 Subsidiary Company should be engaged in silos slipping formed, and then the company can break away from the employer discredit and gain considerable profit. The new competitive strategy is a focus strategy. This focus strategy would make the company gain more profit.