Xi’an Railway Transportation Equipment Co., Ltd. Strategy Analysis

The railway freight car manufacturing industry which Xi’an Railway Transportation Equipment Co., Ltd located currently at the industry low ebb. Within exceptional fierce market competition, the company’s operation and development is presently at the critical crossroad. Facing complicated internal and external environment, how the company to develop in the future and what kind of strategy need to be taken has became the top priority. Through analysis of company’s inner and outer environment, this thesis works out a development strategy the company should take from now on and at the same time put forward measures and suggestions on how to implement the strategy.This thesis firstly analyzed and evaluated the macro environment, market circumstance as well as industry structure by PEST analytic approach and Porter’s five competitive model, think that during the structural transformation of national macro economic presently, the market goods need to be transported has changed significantly, railway freight car manufacturing industry has both risks and opportunities. Through analysis, the conclusion is that the critical success factors of railway freight car industry are research and developing ability, manufacturing capability, market image and public praise, cost control ability as well as quality management capability. Then analyzed the company’s inner environment by value chain theory and core competitiveness theory, and draws a conclusion that Xi’an company’s competitive advantages are research ability, manufacturing capability, personnel’s professional qualities, market image and public praise. Analyzed the company’s strength, weakness, opportunities, threats through SWOT analysis method, compared the analysis result to variety of solutions of company strategy, selected Xi’an company’s developing strategy as differentiation-win strategy, made researches on implementation of the strategy and put forward suggestions.