Study On Development Stratagem In China Railway Group X On New Situation

Currently, economic globalization is gaining momentum. Especially since2009, a global financial crisis caused by the sub-prime crisis of the United States has had a serious shock to the world economy, invading the financial sector and the real economy at large and spreading from developed countries to developing ones. As central enterprises, the "eldest son" of the Republic, faced with the new situation, it is an urgent prominent task to make practical competitive strategy suited for its local conditions.As of the end of2011, China’s railway operating mileage, ranking2nd in the world, has reached93,000km, with the total mileage of high-speed railway exceeded13,000km, ranking1st place in the world. In recent years, with progressive leap-forward development of railway, China’s railway construction had made certain achievement, but the railway mileage per capita is only the length of a cigarette, still far behind the United States and other developed countries. The "Twelfth-Five Plan" for railway has made clear:by2020, the mileage of railway will increase to120,000km, and China’s railway construction also has a lot of developing space. On the other hand, the railway construction has entered the "post-4-trillion" era. Although the State issued a series of policies to promote economic growth, factors such as some "dismount" or stopped newly-constructed railway projects, weak real estate market, blocked overseas engineering construction, as well as inadequate funding constraints of local projects has brought a huge impact on the construction market. These new situations would bring both new opportunities and unprecedented challenges to railway construction enterprise.The thesis aims to thoroughly analyze the new situation faced by China Railway X Group in order to offer it solutions to innovating institutional mechanisms, resolving structural contradictions, strengthening management, raising the core competitiveness, overcoming difficulties and assuming a major responsibility for the acceleration of infrastructure construction and promotion of economic growth. The thesis uses SOWT analysis method to analyze the advantages and disadvantages of the enterprise itself. Besides, with his own working advantage, the author gained knowledge of the Group’s status quo by conducting several in-depth interviews with Chairman of the Group, Secretary of the Board, and seniors leaders of Human Resources, and conducted research and data collections involving railway construction enterprises. Based on all these efforts, the article stipulated the overall goal, strategy and tactics, as well as implementation measures for the group’s ten-year future. With China Railway X Group under scrutiny, the article is expected to provide some valuable guidance for railway enterprises with urgent needs for breakthrough and progress while facing tough and complex situations in the market.