The Diversified Development Strategy Research Of Shandong Expressway Co.Ltd

The development result of Chinese expressway industry might be due to expressway corporation’s birth and growth. In the last few years, as the toll raises the public’s logistics cost, expressway corporation have been undertaking more and more policy pressure. The time limit of expressway franchise and the low profit margins, become the fundamental strategic issue of all Chinese expressway corporations.The primary business of Shandong Expressway Company Limited (SDEC) is traffic infrastructure investment and management. SDEC is the only large state holding listed expressway corporation in Shandong province. In such economic circumstances, SDEC needs to re-establish its development strategy in the parent company’s overall strategy framework, and work on the business diversification on the basis of strong main business. Only in this way, can SDEC realize business continuity. At the moment, the business diversification of Chinese expressway corporations is just in the stage of exploration, and there is no success case yet. Therefore, the diversification strategy research has important realistic significance for SDEC.This paper takes the diversification strategy management theory as basis, follows logistic thread from outside to inside and from macroscopy to microscopy, gets support theory from summarizing the strategic management theory and diversified development strategic theory, takes a documentary research method and research-interview combined method approach to analyze SDEC’s external environment and internal resource, clarifys SDEC’s diversified development strategic positioning, strategic objective and strategic choice, drafts implementation steps of diversified development strategy, and establishes risk safeguard measures.According to synthesis analysis, this paper believes that the biggest challenge of SDEC in the future is business continuity. To realize it, SDEC needs to carry out diversified development strategy, choose diversification industry with high potential, like the city infrastructure investment operations and road logistics, and operate these industries as core business in the future. At the end of the twelfth five-year plans, SDEC should try to become the most famous and powerful diversified expressway corporation and become influential in city infrastructure investment operations and road logistics industries in Shandong province.This paper roundly analyzes and discusses the cause, position, industry direction, implementing measures and safeguard measures of SDEC’s diversified development strategy. It can be used as a reference for SDEC’s diversified development, and also for other expressway corporation in China.