Study On Competitive Strategy Of The5Th Company Of China Railway2Th Bureau Group

With the development of world economic globalization and the acceleration of building a well-off society in all-around, China is facing an important period of strategic opportunities. Meanwhile, the state-owned construction enterprises will be competing fiercely with stronger competitors in a more competitive environment. However, the state-owned railway construction enterprises have been in long-term protection of policy and their parent companies. Because of the influence of national macroeconomic policies on construction industry and deeply-rooted business idea of road and rail construction-oriented, many state-owned railway construction enterprises which are lack of a clear competition strategy, are facing tough and grim situation of untargeted business policy, stagnation in market share, deterioration in profitability and drop of economic benefits in the fully liberalized construction market. Although these enterprises are trying to cultivate and build their core competence, the advantage formed is not obvious. Therefore, it is required and urgent that all state-owned railway construction enterprises should work out a clear competition strategy in order to get rid of drawbacks, to maintain the leading position in construction market and to guide the enterprise to a bright future of being more competitive and sustainable.Taking the5th Company of China Railway2th Bureau Group as the research object, this paper deeply analyzes its competition strategy by using theories and methods of strategic management on the basis of previous studies. First of all, the background, significance, thoughts and methods of this study are introduced, and then, a brief review of definition and basic theories, types of competition strategy and analysis methods of strategy and strategic management is carried on. Secondly, PEST analysis and Michael Porter’s Five Force Model is used to analyze the external environment of the5th Company of China Railway2th Bureau Group from aspects of macro environment, industry environment and competitors. Quantitative analysis of opportunities and challenges of the company is made by External Factor Evaluation Matrix (EFE), and one of advantages and disadvantages in internal resources and capabilities is made by Internal Factors Evaluation Matrix (IFE). An overall analysis of strength, weakness, opportunity and threat in construction market is based on SWOT analysis. Finally, according to the company’s vision and reality, this paper puts forward a matching strategic direction and corresponding competition strategies. On the basis of competition strategy, implementation and corresponding safeguard measures to further improve the company’s core competitiveness and overall economic benefits are also discussed.Hopefully, the results and viewpoints of this study will have certain reference and feasibility not only for the company to determine a more scientific, reasonable and effective competition strategy, but also for the reform, development, competition and innovation of peers in construction industry.