A Case Study On Competitive Strategy Of Chinese General Contractors In Cement Industry Under Background Of Overcapacity

Since the 21^st century,the development of the global economy has stimulated the expansion of the cement industry,which has driven the rapid development of the cement plant construction industry.Chinese EPC contractors are leading the world in research&design,manufacturing and construction of new dry process cement production lines,fully engaged in the global cement plant construction industry.Nevertheless,with the occurrence of the global cement production overcapacity as well as the overcapacity of the cement plant construction industry,the competition in the international market of cement plant construction industry is heating up.Faced with a harsh competitive environment,cement construction EPC contractors must develop a clear competitive strategy and enhance their competitive position in the competition.The subject of this paper is that:in the context of global cement production overcapacity as well as overcapacity of the cement plant construction industry,as one of the most representative Chinese EPC contractor specialized in cement plant construction industry,how the Construction Company C selects a competitive strategy suitable for herself and breaks through the predicament of the"Red Sea market"and gain a dominant position in competition as well as more market share.The research methods applied in this paper are mainly literature research method,case analysis method and theoretical tool analysis method.From the perspective of enterprise competition strategy,the background and significance of the topic is firstly stated,followed by analysis of the external environment of the Construction Company C by PEST analysis method;later on Porter's“five forces”model is employed for the study the competitive environment of the cement plant construction industry.Then the value chain analysis method and the VRIO framework are both applied so as to analyze the internal environment of the Construction Company C.Finally,the SWOT analysis method is used to study the competitive advantages,disadvantages,competition opportunities and competition threats of the Construction Company C.Based on the above studies,two basic competitive strategies are proposed for the future development of Construction Company C,which are Cost Leadership Strategy and Differentiation Competition Strategy.It is further recommended to improve the organizational structure,promote the corporate culture,optimize the human resources,improve the compensation system and strengthen the performance evaluation as a guarantee of the implementation of the above?proposed competitive strategies.The conclusions of this paper are:?1?For the purpose of complying with the development trend of the global cement industry and the competition pattern of the international cement plant construction industry,a series of operation cost control and optimization for the five aspects of engineering design,complete equipment and procurement,logistics,construction,and joint debugging from the perspective of EPC project value chain,aiming at strengthening the competitiveness of enterprises.Comply with the development trend of the global cement industry and the competitive landscape of the international cement engineering industry.?2?Given the real situation of the Construction Company C,Differentiation Strategy is selected.The aspects of service,business model,technology and brand are considered vital to enhance the internal resources of the enterprise and create new competitiveness for the development of the enterprise.The research of this paper not only provides a reasonable competitive strategy for the continuous development of Construction Company C,but also provides reference for others in the same industry for improvement of comprehensive competitiveness.