Study On Railway Diversification Strategy Implementation Problem

In order to promote the scientific development of railway, in April of2011, the railway administration decided to implement diversification strategy to achieve an overall occupation of market. In this way, when servicing for the development of economy and society as well as general public, a multi-channel improvement of economic efficiency of railway enterprises is expected.The diversification strategy proposed by railway administration this time neither is an statement and tactical adjustment nor like the previous management of multi-business enterprises, but a significant management and development strategy in various aspects such as management concept, management field, management mode and management objective. In the process of implementing this brand-new railway development strategy as diversification strategy, there are many urgent problems requiring solutions:how to find basis and support from the basic theory of diversification management; how to apply this strategy effectively to the real management of enterprises by using its basic theory.In this thesis, the author, according to basic theory of diversification management of enterprises, firstly analyzes the current situation, background and content of railway diversification strategy and points out the necessity of implementing it. Then, on the basis of core competence theory, a research into the relationship between core competence and diversification management is conducted and a conclusion is drawn from this research:Core competence is the basis of diversification management while diversification management is a significant way to develop core competence. To go one step further, the author continues to give an analysis for core competent of railway, especially for the core competent of cargo and passenger transport and finally presents some methods to make the core business of both cargo and passenger transport better and stronger. After that, under the guidance of relative diversification theory, the author raises a problem based on business relevance about field expansion of railway diversification management. The author analyzes the practice of extending service chain of railway cargo and passenger transport in Japan and Germany and then finds out some implementing approaches that Chinese railway enterprises can use for field expansion and extension of servicing chain. On the other hand, according to resource surplus theory, the author further discusses about theory basis, approaches and the main risks of railway irrelevant diversification management and finally gives some control measures. In the end, the success of Guangzhou Railway Group of implementing diversification strategy gives support to the correctness and rationality of analysis in this thesis about the problems such as direction, approaches and risk control which will occur in the process of implementing this diversification strategy.