Research About The Market Competition Strategy Of The Project Guarantee Business For China National I&G Company

With the rapid development of China’s economics, the size and complexity of construction projects is increasing year by year. The quality of many construction projects is not only an economic issue, but also an important social problem of taxpayers’immediate interests and government image. To strengthen the construction contract management and improve the efficiency of investment projects management by market mechanisms, the introduction of advanced and scientific management methods is needed for China construction field. The project guarantee is defined as that:for the request of a party of the construction contract, the guarantor gives a written commitment to the other party to guarantee that if the warrantee is unable to complete the obligations specified in the contract, then the guarantor must complete the construction projects and make other forms of compensation. Project guarantee can ensure the successful implementation of the construction contract and protect the rights of property owners and regulate contractor behavior, and then play an important role in promoting the orderly development of the construction market. Ministry of Construction in2004publishes a provision that if the construction contract cost of real estate projects is more than10million yuan (including new construction, renovation and expansion project), the project guarantee is must be implemented.China National Investment&Guaranty co., LTD (hereinafter referred to as National I&G Company) was founded in1993by the Ministry of Finance and Economic and Trade Commission and it is the first professional pilot credit guarantee institution by the State Council. In2001, National I&G Company firstly tried to carry out the project guarantee business in China. By the end of2011, it has provided approximately30billion guarantee contracts and3billion guaranteed loans. But with the try and promotion of project guarantee business, many guarantee agencies see the market prospects and business opportunities of it, and then they have access to the industry and achieve rapid developments, such as that "Shenzhen Hi-Tech Vote Company" has provided approximately100billion guarantee contracts and10billion guaranteed loans. The market advantage of National I&G Company in project guarantee business has been lost. In this context, how to adjust the market competitive strategy of project guarantee business and recapture the project guarantee market is an important issue for National I&G Company and must be solved.The paper first reviews the market competition strategy theory and project guarantee theory and provides a foundation for the study. Then it uses the PEST method and Porter five forces competitive model to study the external macro environment and industry competitive environment of the project guarantee business for National I&G Company in-depth analysis. Also it analyzes the project guarantee business status quo and its internal resources and capabilities. Based on this, the paper uses the SWOT analysis method to study the strengths, weaknesses, opportunities and threats of the project guarantee business for National I&G Company and build the market differentiation competition strategy and decentralization competition strategy. The differentiation strategy includes marketing differentiation, regional development strategy differentiation, operational mode differentiation, product types differentiation and cooperation mode with the builders differentiation these five areas. The decentralization strategy refers to fully explore the foreign project guarantee business. Finally the paper proposes the safeguards measures of project guarantee business implementation, including the improvement of employee performance incentive system, optimization of the project guarantee business approval process, establishment of the customers online application and electronic guarantee system, strengthening of the business operations management, further improvement of the overall risk management system and the speed up of the research about foreign project guarantee business these six areas of business.