Jinzhong Group Transport And Logistics Center Of Concentric Diversification Strategy Research

The top priority of railway restructuring should be given to separating supplementary business of enterprises engaged in various line of business from their main business of transportation so that such enterprises can turn into independent economic entity in the market responsible for profits or losses.The research subject of this paper, JinZhong Group,is the largest enterprise engaged in various line of business in Shanxi Railway Bureau. It depends on monopolistic advantage in transportation to run it's own business in transportation and logistics. At the same time it undertakes the major task of reducing and then split-flowing staff as well as investing more to create better performance, involved in such industries as commerce, trade and sale. The separation of main business from supplementary will lead to the gradual loss of its monopolistic advantage in transportation. Therefore, it should relocate itself, devise reasonable strategy for development, foster core competence and become completely market-oriented.On the basis of an overall investigation and research on the group as well as the strategic management theory, the paper analyses the influential factors of external environment and the internal conditions of the group so that its core resources and competences become obvious and a strategy of diversification focusing on transportation and logistics is based on it. That is to fully utilize the existing advantage in transportation and regard joint transportation as the core so as to achieve concentricallydiversified development in the surrounding areas. With regard to features of transportation and logistic industries as well as the company itself, this strategic goal is achieved through five measures, namely, to adjust the share holding structure, to optimize organizational structure , decision-making management and proceduer, to development human resource, to optimize and adjust financial management , to build up corporate culture and management information system.Combining theory and experience with practice, the paper lists suggestions on the development pattern of the company in the hope of guiding its sound progress.