Analysis Of Profit Model For Chengdu Railway Bureau Freight Transportation

The Chinese Rail Industry has experienced six times innovation since the Reform and Opening up. However, the previous five times ware confined to change the model of the Railway internal assets business. The Railway Bureaus under China Ministry of Railway have still acted as dual roles, an administrative organization as well as a market player. In2011, the State Council has made a clear decision to separate its governmental function from the enterprise management in order to improving their efficiency, to enhancing industry vitality in public service and strengthening market competition in local railway bureaus.This paper estimated the political, economical, cultural and technical aspects of the Chengdu Railway Bureau in the transportation macro environment with the PEST and SWOT theories, evaluated its opportunities and threats according to these factors, analyzed the concrete competitive environment in Chengdu Railway transportation comprehensively, expounded the relationships between Chengdu Railway Bureau and Supplier, Buyer, substitute and competitor and it’s developmental tendency. After analyzed the external environment and the faced competition deeply, the paper summarized the features and questions of internal resource structure of Chengdu Railway Bureau, concluded a model to raise profit and competition for Chengdu Railway Bureau’s freight business.Based on the Analysis of the advantage resources and the competitive environment of the Chengdu Railway Bureau freight, with the core competitiveness, which is super execution under the railway quasi-military management and centralized and unified command training, and the scale of operation, formed from the railway line network and the railway stations with a large number of storages, the paper provided a developmental strategy, which is to establishing a feasibly profitable model, such as client resolution, brand, professional management and value chain models, finally to becoming a kind of new integrated enterprise with commercial and logistic functions.