Research On Vertical Integration Strategy Of ZS Group

The industry of tunnel and underground engineering is a prosperous industry with splendid future in the 21^st century.However,there is few studies on the industry of tunnel and underground engineering,as well as on the development strategy of the enterprises specialized in tunnel and underground engineering.Due to the development of green works and civil defense works,the industry of tunnel and underground engineering grows rapidly.More and more enterprises begin to build tunnels and underground engineering,and the competition in the industry of tunnel and underground engineering becomes more and more tense.Therefore,ZS Group has to follow the strategy of strengthening the major business and carrying out new business so as to widen the business scope in good order.The enterprises specialized in tunnel and underground engineering cries out for more strategic studies to guide the enterprises for rapid development.Based on the management experience of the past two decades,the author studies how ZS Group improves her vertical integration of design,construction,scientific research and manufacture.Based on the development of ZS Group,the author analyses the competition environment of ZS Group by means of PEST and SWOT,puts forward the development strategy of improving the vertical integration of design,construction,scientific research and manufacture,so as to improve the agglomeration effect of different businesses of ZS Group,improve the development quality of ZS Group,and finally achieving transformation and upgrading of ZS Group.The dissertation can be used as reference for ZS Group to improve the strategy of integrating design,construction,scientific research and manufacture,as well as for enterprises that build underground infrastructures crossing mountains,rivers,lakes and seas.The main research conclusions of the study are as follows:1.The author analyzes the internal and external environment of ZS Group,as well as the state-of-art and the competition environment of the industry,then analyzes the finance condition,resource capacity and industrial value chain of ZS Group through qualitative and quantitative methods.The author also analyzes the opportunities,threats,advantages and disadvantages of ZS Group and concludes that ZS Group is a growing enterprise and that ZS Group should widen her upstream industrial chain in good order so as to ensure the sustainable development.2.Based on the analysis on related elements,the author points out that the development of the design business of ZS Group and the agglomeration effect of different businesses of ZS Group are not so good.The author demonstrates the feasibility of the proposed strategy and provides advice on the improving of the strategy.3.Based on the vertical integration strategy,the author provides suggestions on the improving of the strategy of integrating the design,construction,scientific research and manufacture.