Research On Strategic Transformation Of China Comservice Saudi Arabia Subsidiary

Led and implemented by China, the strategy of the Belt and Road Initiative is the important embodiment of economic globalization to further promote the development of enterprise globalization and depth of globalization. China Communications Service Saudi Cooperation is a well-known company in the filed of telecommunications registered by China Communications Services (Hong Kong) International Limited Company in 2009 at Riyadh, whose business development, bearing the strategy of integration, focus on fiber infrastructure construction and maintenance, equipment installation and maintenance. After 8 years'sharply growth in both company's revenue and profit, the company has encountered serious problems of market shrink in communications filed, increase of competition and sharply decline of revenue and profit.As two very different strategies and having their own advantages, Integration Strategy relies on industry chain extension while Diversification Strategy relies on cross industry expansion. Facing the problem of communications market shrinking and under the background of the Belt and the Road Initiative, to continue the integration strategy by focusing on communications market or to take the advantage of the Belt and the Road Initiative and apply diversification expansion strategy has becomes the problem that the company management must think of.This paper briefly introduces the company's organizational structure, core competencies, key customers and business and analyze in depth of the strengths, weaknesses, opportunities and threats between the company and its competitors and brings up the existing problems of the company through a comprehensive statistical analysis of business data. In social dimension, the PEST analysis method is applied to analyze politics and laws, economy, social culture and technology and points out the important factors that the company embracing the diversification, which including the Saudi Arabia is a important participant in implementation of the Belt and the Road Initiatives, Saudi Arabia and China features mutual political trust, mutual economical complementary, cultural inclusiveness and technological connectivity, and the Belt and the Road Initiatives of China and Vision 2030 of Saudi Arabia. In industry dimension, five force model is applied to analyze the five aspects including existing rivalry, potential new entrants, buyer, suppliers and substitutes and points out that the Saudi communications market cannot be simply relied on as it is gradually shrinking and the competition is heated and diversification expansion should be pursued. In internal and external relations dimension, SWOT is applied to introduce the strengths, weaknesses, opportunities, threats and their combinations, and points out that SO combination-diversified expansion strategy transformation, is the best choice for the company. After analysis strategy transformation basis, the two forms of company strategy transformation, i.e., business diversification and cooperation diversification, were summarized. Transformation preparation includes adjusted lineal organization and arranged manning, designed new business-running mechanism and further proposed strategy transformation specific program which is, on the building up basis of platforms, to put the communications core business of the company into the self running platform, to put the non communications core business and cross industry business into the cooperation platform and to put other business into leasing platform to achieve the diversified expansion strategy transformation of the company by basing on communications core business and through the cross-industry expansion and leasing platform.At last, this paper points out that there exist huge opportunities and advantages as well as the weaknesses and threats for the company strategy transformation and shows the prospect for platforms cooperation and proposes measures to delay the emergence of platform springboard effect, and points out insufficient analysis on the big data of platform demand and inadequate performance evaluation of cross-industry expansion in writing this paper.