Deversification Strategy Of Traditional Railway Enterprise

Diversification strategy is a kind of the important ways of existence and development of enterprises with the certain development stage of a business or industry.With the change of internal and external environment,the traditional railway enterprises in our country promote railway scientific development to response to the market risk.The ministry of railways decided to implement diversification strategy in April 2011,the government implement the reform of railway management system,clearly put forward railway general company should put railway passenger and cargo transportation service as the main business and apply diversification strategy in 2013.Huhhot Railway Administration implements the related diversification strategy based on“to development around the two rail”after many years of market exploration.Huhhot Railway Administration is expanding business areas,ranging from coal transport trade,logistics services,building construction,commercial real estate,machine maintenance,tourism,advertising,etc..But there are still many problems in the implementation.It is very important for Huhhot Railway Administration to formulate the diversification strategy with the national and global economic development situation according to their own conditions.Therefore,this article takes Huhhot Railway Administration as example to study the diversification strategy of traditional railway enterprise by the method of literature review and the longitudinal comparison.First of all this article analyzes background and significance of implementing diversification strategy for traditional railway enterprises,expounds the present situation from the significance of implementing diversification strategy,policy guidance and the problems of implementing diversification strategy to shows the theoretical significance of this paper.Second,this paper analyzes the successful cases including the Japanese railway,civil aviation in our country,Guangzhou railway group in order to guide Hohhot railway Administration to adjust the diversification strategy.Third,this paper expounds the developing course and current situation of Hohhot railway administration since the reform and opening up.and analyzes the results after the implementation of diversified development strategy,and analyzes the resources integration,business transformation,organizational structure and human resources and the existing problems and the current challenges,analyzes the reasons of the problem in order to provide the basis for subsequent strategic adjustment.Fourth,the department is the core part of this article,mainly study the strengths and weaknesses,opportunities and threats of Hohhot railway administration by the SWOT analysis method,and determines finally the current strategy target and implementation path.Finally,this article puts forward concrete implementation measures from the strategic layout,new project development,transformation and upgrading of traditional enterprise,and puts forward thespecific supporting measure in the system optimization,strengthening information construction and improving the evaluation mechanism in order to provide the reference for railway enterprises.