Research On Development Strategy Of JD Construction Corporation

JD Construction Corporation is a private company which established in 1993. It’s located at Shanghai. JD Construction Company focuses on the design and building of the foreign industrial construction. It’s one of the biggest logistic construction contractor. The construction contract amount achieved to 1.684 billion Yuan in 2015. Engineering contracts amounted to 1.684 billion yuan in 2015. The construction output value is around 1 billion. JD Construction Corporation mainly involves in manufacturing, large-scale of logistic facilities, distribution center and food industry. It can handle the formalities concerned, optimize the design, construction, assure quality and deal with after-sale service etc. Its’ customer comes from European, America, Japan and other developed countries including Mars, Man, Hansgrohe, ABB、Nippon, Sumitomo and other famous companies. The annual earnings growth reaches 20% in recent 3 years. It built almost 100 of industrial constructions and obtained rich experiences.The output and new contract sign rate decreased at a historical low with the gradual slowdown in economic growth in China in 2015. The construction companies are facing furious competition in the market. The whole industry is changed from era of marginal profits into era of fierce elimination. So it must change the management style. JD Construction Company lacks of strategic development planning, and causes lots of problems. In this way, it brings challenge to JD Construction Corporation. So the author thinks it’s necessary to research for JD Construction Corporation.In this article, firstly, it analyzed the current situation for domestic construction industry and researched the develop strategy including analysis of the construction characteristic, competition, developing, and strategies. Then it mentioned the developing problem of JD Construction Corporation.It analyzed the internal and external environment by PEST, Poter Five Forces Model, External Factor Evaluation Matrix and Internal Factor Evaluation Matrix methods to know the current situation and provide decision-making basis for strategy development in JD Construction Corporation. It confirmed the position and the developing direction of JD Construction Company in construction industry by analyzing the SWOT model and value chain. It determined the vertical integration strategy by QSPM matrix. Finally, it developed specific strategies for implementing by balance score card model. It evaluated the risk of strategy, ensure the implementing and achieve the goal.This thesis is a tentative exploration for construction strategy in industrial segments. The result of this thesis is to provide reference for JD Construction Corporation and other traditional construction company.