The YIQI Competition Strategy Research In Public Policy

As a productive, service and public-benefit industry, companies engaged in urban publictransportation play the first process of social economy producing, whose effective functionwill directly influence the blossom of urban economy.On the one hand, the policy of “public transportation priority” has gradually been acommon sense of governments in all levels. They spare no effort to support the growth andgradual maturity of the public transportation industry including in aspects of urbantransportation plan, laws related and financial priority. On the other hand, the character ofprofitability and competition of companies lie in the industry have been weakened by thestanding out public-benefit one. It will be a new and urgent problem for the publictransportation companies to face with. They have to take a serious consideration of convertingtheir idea of company management so that they can find a more positive way to survive froma more and more complex market. They should keep adjusting their strategy of developingaccording to the tendency of urban public transportation. As well, to enhance their corecompetitiveness to take a front seat of the new situation.The paper below is based on the specialized study of YiQi Company Ltd. Conducted bythe route of “Raise Question——Analyze Question——Solve Question”, this essay, whichmakes the use of the Michael Porter’s Five Forces Model and SWOT analysis throughout, trys tobring on a rigorous analysis of the external environment, including the macroscopical,industrial and competitive ones. And the company’s inner environment will be dissectedinto several key elements as the decisive factor of management, core competitiveness and theexisting problems. Then a competitive strategy led by the “public benefit” character is comingout at the very end.YiQi company is a large-scale State-owned Enterprise with a running history of60years,whose operation under the public benefit policy is strongly representative. The exploratorystudy and scientific strategy of competetion of this company will be a reference forstate-owned companies both in and outside the public transportation industry when they maketheir plans to take part in the competetive market.