Research On Evaluation Of Transient Competitive Advantage Of China High Speed Rail Project Under International Competition

In 2009,China has put forward ‘Going Out’ strategy for high-speed rail formally.Then ‘One Belt,One Road’ and ‘Asian Investment Bank’ policies were introduced.Overseas high-speed rail projects such as Thailand’s Bangkok to Nongkhai High Speed Rail Project,Indonesia’s Jakarta-Bandung High Speed Rail Project,Russia’s Moscow-Kazan High Speed Rail Project were won by China one by one.However,although the international high-speed rail market is vast,competitors are also very competitive.Kawasaki in Japan,Bombardier in Canada,Alstom in France,Siemens in Germany,GE in the USA and CRRC in China share global high-speed rail market together.Chinese contractors must enhance their competitive advantages and choose right partners to form the joint venture in order to improve the probability of winning the high-speed rail projects.Up to now,researches on high-speed rail around the world are mostly concentrated on the macro-industry level.There is no specific study on the international high-speed rail project bidding,nor does it involve the choice of partners in the EPC project and the establishment of a joint venture to enhance the competitive advantage.So,this article is trying to figure out these issues.This article will recognize transient competitive advantage factors of Chinese high-speed rail projects under international competition firstly.Then,identifing the high-speed rail market that can enter with the factors and simulating evolutionary games with potential partners in the markets.The partner in joint venture which has the largest competitive advantage with steady state would be chosen to be coporated to conduct bidding.And finally,a simulation case is analyzed and corresponding strategies are given.In detail,firstly 24 competitive advantages of the international high-speed railway project are identified through the abductive reasoning of the typical case,and then a questionnaire for data collection was designed.Descriptive statistical analysis and exploratory factor analysis were conducted by SPSS software.To judge whether the market is suitable to enter before bidding,an AHP-SWOT model of international high-speed rail market is settled.24 competitive advantages of the international high-speed railway project are dividened into 6 parts including ‘Experience’ series,‘Organization’ series,‘Risk’ series,‘Capital’ series,‘Technology’ series and ‘Social’ series.They correspond to strengthes or weaknesses of SWOT.Opportunities and threatens of SWOT are analyzed in addition.The model assesses the competition position and provide corresponding strategy,‘Exploration’ strategy,‘Cooperation’ strategy,‘Avoidance’ strategy or ‘Caution’ strategy.If the market can enter,potential partners could be sought to form joint ventures to bid.International high-speed railway project competitive advantage of joint jenture is composed of resource and capability competitive advantage factors which transferred by factors ‘Resources integration’ and ‘Knowledge transfer’,and ‘Internationalization’ factor shapes the competitive advantage factors within the host country environment before ‘Coordination ability’ condenses the them among members.The greater the competitive advantage of the joint venture,the easier it is to win the bid.However,under different partners and different joint venture management models,the competitive advantage of the joint venture is different.Through the evolutionary game model of international high-speed rail joint venture,all stable cooperation status and strategies including ‘Closely-coordinated joint venture’,‘Mixed alliance with dominat member a and subordinate member b’,‘Mixed alliance with dominat member b and subordinate member a’,‘Loose-coordinated consortium’ or ‘Mixed alliance dominated by any one and the other subordinates’,‘Closely-coordinated joint venture/ Loose-coordinated consortium’ can be determined.Choosing the partern which belongs to the joint venture with the greatest steady competitive advantage and conducting the right strategy can maxmize probability of winning the bid.At last,AHP-SWOT market entry model model,international high-speed railway project transient competitive advantage model and joint venture bidding evolutionary game model compose transient competitive advantage of China high-speed railway project under international competition model system.The findings of this research make certain contributions to the improvement of research system of international high-speed rail project competitive advantage.Further more,by offering Chinese high-speed railway companies reference and guidance about how to choose right parterns,manage the joint venture in right model and improve the competitive advantage of the joint venture,the results we get in this paper are beneficial for the spreading of competitive advantage strategy in business.