Research On The Development Of HMD’s Strategic Transformation

HMD, owned by the Chinese Shipbuilding Industry Corporation, is a specialized modern enterprise to produce high-power marine diesel engines and large engineering outfits, which has a long history in the field of shipping and can be said to be the leader of Chinese marine low-speed machine manufacturing company. The finance crisis of2008had a very bit impact on the Chinese shipbuilding industry. As the first brand of marine equipment industry, HMD’s development is closely related to national and global shipbuilding industry, which have suffered many problems and difficulties and is experiencing the change from the prosperity to the difficult situation that is caused by the financial crisis. By the analysis of the current situation, if the shipping market recovery is weak in the next few years, HMD will face a shortage of orders or even the crisis of surviving caused by the limited production capacity, lack of technology accumulation, single product structure. As the industry’s leading enterprises, HMD is currently running smoothly but lack of the adequate growth strength. Therefore, the paper aims to study the HMD’s development strategy in the current internal and external environment, which has a strong practical significance.From the HMD’s reality, based on the study of strategic management theory, analysis of internal and external environmental, using Porter’s five forces model, PEST and SWOT methods, the paper tells us the advantages and disadvantages of the HMD, and the future trend of marine diesel engine industry. Simultaneously, the paper analyzes and summarizes the development strategy, designs three new development strategy of HMD’s restructuring and development, that is technology upgrading, extension services and investment development strategies, and discusses and recommends to the ways of implementing these specific three new strategies, assessment improving, precautions and security measures.In the fierce market competition of marine diesel engine, by the discussion to the HMD’s development strategy, the paper study the upgrading, enhancing their competitiveness, business development strategy and other issues by re-examining industry environment of HMD, and hope it could be reference for the industry’s survival and development.