Research On Diversification Strategy Of Railway Transport Enterprises

This paper provides the analysis on implementation of diversification of both domestic and foreign railway transportation enterprises. The development model of the diversification of railway transportation enterprises is established by identifying the problems and generalizing experience after more than one year’s practice in Beijing Railway Bureau. It applies Service Management Theory to guide the process of diversification operation and to establish the operation mechanism. Thus replication scenarios are provided to the other railway transportation enterprises who will implement strategy of diversification.Significance and background of implementing diversification strategy in Chinese railway transportation enterprises are briefly introduced at first. The substantive contents of the paper as well as the research objective, research technique and innovation are also highlighted. Diversification Strategy and Service Management Theory are briefly introduced. Application and development of the above-mentioned theories in the other industries are enumerated as well. And also this paper provides consolidation and analysis of the current status of both domestic and foreign railway transportation enterprises who implement strategy of diversification. The main problems during the process of implementing diversification strategy are highlighted through more than one year’s practical experience in Beijing Railway Bureau. Furthermore, it provides the study on the mode of implementing diversification strategy by railway transportation enterprises. Combined with more than one year’s practical experience in Beijing Railway Bureau, the operation model is established by the routes of preparation for the implementation of strategy, identification of strategy position of the railway transportation enterprises by applying SWOT analytical method, establishment of operation management system and construction of implementation mechanism.Moreover, it provides Application of Service Management Theory to make excellence of the core business (passenger and freight transportation) and outreach business and also to establish the service mechanism and development model of diversification of railway transportation enterprises. The model of diversification strategy described in this paper is applicable to the other railway enterprises.At last, it concludes that the success of implementing strategy of diversification of railway transportation enterprises depends on policy support from the government, which includes:Increase the investment on railway constructionBear the expense of public service of railway transportation by national financial subsidiesRevise the right on price adjustment...