An Industrial Organization Study Of Engineering Consulting Industry In Hubei Province Based On SCP Paradigm

Engineering consulting industry is an intellectual service industry, it’s technology-based, it use a variety of subjects of knowledge, science and technology and management methods, to provide consulting services for government departments and investors on the economic construction and decision making of investment project, to increase efficiency of macro and micro economic. With the deepening of development, reform and construction of Hubei Province, engineering consulting industry in Hubei Province is developing rapidly; it has an important role in the healthy operation arid project research of the provincial and municipal economy. However, many problems exposed in the process of rapid development of the engineering consulting industry in Hubei Province.Industrial organization theory of Harvard school is based on price theory-based, integrated series of theoretical research. Through empirical research, the industry is broken down into specific markets, analyzed in three aspects-the structure, conduct, and performance. A analysis framework of structure, conduct, performance is created, which not only has a systemic logic system, also can analyze specific aspects. The paper use the literature analysis, mathematical statistics, the combination of empirical research and normative research methods to analyze the development status of the consulting industry in Hubei Province, according to the classic Industrial Economics SCP theory and statistics. The paper analyze and describe the industrial organization condition of the engineering consulting industry in Hubei Province, and put forward policy recommendations.The first chapter is the introduction, raised the issues, the goal of the study. The second chapter is the theoretical basis of the main industrial organization theory. The third chapters established SCP analytical framework, according to the survey data, described development status of Hubei Province engineering consulting industry, and analyzed the interaction of market structure, conduct, performance, and built a system dynamic model of the industrial organization of the engineering consulting industry in Hubei Province. Corresponding conclusions and recommendations are presented in the last chapter.This paper concluded that the market concentration of Engineering consulting industry in Hubei Province is high, the average size of public and private ownership units varies greatly, the market is controlled by a small number of large units, accounted for a relatively high proportion of the total operating income and consulting services provided have relatively large differences. Overall, industrial organization runs on a healthy track, excessive monopoly and excessive competition neither exists in the industry. Through the analysis of the conduct of the enterprise market, the merger, organizational system standardization, research investment, quality management and customer relationship management will directly or indirectly affect the market structure and performance. The margins, the per capita amount of profits and labor productivity of the engineering consulting industry in Hubei Province is greater than the average level of our society to a large extent, illustrating there is much excess profit in the industry, and resource in the industry cannot be completely effectively allocated. The paper makes policy recommendations at last, government-related consulting engineering services should be regulated, reasonable competition of professional markets should be promoted and technological progress should be encouraged.