Strategic Analysis And Choice Of HS Concrete Company

Since China’s policy of reform and opening up to the outside world, economy grows rapidly, investment on infrastructure construction improves sustainably and the speed of urbanization increases quickly, which give construction sector great development opportunities. RMC is one of the important building materials in the construction. The output of the RMC sector reached900million m3in2010, and sale was up to more than300billion RMB. With several years of fast development, overcapacity of RMC appears the industrial concentration is low and competition is more severe. How to deal with these questions are concerned by executives of RMC company especially, and these are also the subjects that management experts and scholars focus on.HS concrete company is a wholly-owned subsidiary company of HS group. HS concrete company has20years’experiences and has strong competitive advantages. HS concrete company has been a leader in the RMC sector for more than10years, but it still faces many common difficulties in the RMC sector, stagnation of systern construction of company, constraint of resources and ability and restriction of management The development of HS ooncrete company faces unprecedented challenges. Where is the company’s future? How to maintain competitive advantages of HS concrete company in the RMC sector? How to get profit which is above the average profit of the RMC sector in the fierce competition? These serious questions are what HS concrete company are facing.The author of this paper who is a key executive of HS concrete company adopted knowledge which combined EMBA theories and RMC industry and the company’s present situation to explore the trend of the development of the RMC industry in order to choose strategy of HS concrete company, and then make it as the basis of the implementation of the company’s strategy in the hope that this paper can give competitors some references.This paper consists of five chapters. The first chapter is prolegomenon including description of the background of research, objects, meaning, purpose, methods of research and logistical structure. The second chapter illustrates the external environment of HS concrete company. With analysis of external macro-environment, industry environment and competitive environment, it adopted the analytic methods of EFE matrix to prove the company’s ability of using external opportunities and avoiding external threats. The third chapter shows the internal environment of HS concrete company. It adopted analytic methods of IFE matrix to prove the ability of the company’s strategy by the analysis of internal resources, company’s ability, strength and weakness, and value chain. The fourth chapter shows the company’s strategic purposes and choices to confirm the company’s strategy, and it gives the company direction of development. The fifth chapter which is based on the company’s present situation shows the implementation of strategies to maintain the company’s competitive advantages.With research, this paper shows that the rapid development of China’s economy gives building materials industry a big opportunity and platform, and also provides vast chances to use RMC. The development of Chengdu-Chongqing economic zone is a national strategy and the space of development of this region is above the national average level. For HS concrete company which is in and focuses on this region, it has a wider developmental space. With the changes of Chinese economic development mode and the requirements of low carbon, environmental protection and energy saving, concrete companies face more opportunities and challenges. With external environmental analysis and internal factors analysis of HS concrete, this paper points out that HS concrete company has more chances and has stronger ability to avoid threats than other competitors. The strategy which HS concrete company implements is much better than others’. This can help HS concrete company to develop businesses. This paper defines the developmental direction of HS concrete by strategic match and choice, and the directions are as following:(1) The strategic competitive basis is the cost leadership strategy, which implementing includes specialization, improving business layout and infrastructure facilities construction, controlling process of manufacture, outsourcing the process of transportation and pumping, improving technological innovation and technological application and technological services (2) Adopting the market penetration strategy and market development strategy to accomplish strategic development or change. Strengthening sales ability, improving market share; delivery on time are the keys to improve services and to create more values for customers. HS concrete should develop Chongqing market now and enter other metropolitan cities in western China such as Kunming, Guiyang, Xi’an, Lanzhou etc at a proper time to accomplish the mode of chain stores and become a concrete group.(3) Adopting the expansionary strategy including implementation of centralization strategy and integration strategy to accomplish strategic development or change. Improving market share and expanding production scale by merging competitors. Entering cement and aggregate industry by merger, cooperation and buying a share.(4) Strategic development or approach includes internal development strategy, merger strategy and JV strategy. Adopting approaches of purchase and lease to establish plants in Chengdu and Chongqing to accomplish business layout and improve market share quickly.