Research On The Diversification Strategy Optimization Of CRRC Lanzhou Co.Ltd.

With the rapid development of China's economy and the rapid advance in the process of global economic intergration,Chinese enterprises are now facing an increasingly fierce competition.In order to disperse the operational risk and create new economic growth points.More and more domestic enterprises are attempeting to carry out the reform in the directing of diversification growth.Diversification strategies can help companies to diversify risk and increase resource utilization.At the same time,it also brings challenges to the enterprise.If the Diversification strategies cannot be implemented correctly,it will bring opposite results to the enterprise.It is very important for companies to develop a set of diversified strategies suited to their own conditions.With the the support of the Belt and Road,The rail transportation equipment manufacturing industry in China will usher in a new opportunities.In 2017,China's railway system has undergone reforms.The main position of market operation is gradually established,which has profound impact on the development of related ancillary industries in the railway industry.Overall,the market demand of China rail transportation equipment is strong and the growth fastly,which has a positive influence of promoting the rail transportation equipment manufacturing industry.CRRC Lanzhou Co.Ltd.is the only base in Northwest China of manufacturing and overhauling diesel locomotive and electric locomotive.CRRC Lanzhou Co.Ltd.began to implement a strategy of diversified development in the 1990 s.The main product is locomotive overhauling,also operating the wind-power tower business,railway construction machinery business,transportation business and communication tower business.The business operations had a good performance before,But now it is declining gradually.Formulate the corresponding strategic plan and define the future product direction.CRRC Lanzhou Company should help the sustainable development by optimizing its diversified development strategy under the complex and changeable market environment in the new market.This paper takes CRRC Lanzhou Co.Ltd.as the research object,Through the "PEST" analysis to analyze the external factors of the development of CRRC Lanzhou Co.,Ltd..The main research includes political factors,economic factors,technical factors and social factors.Using the Porter's five-force model method to analyze the competitive environment.Also,Analyzing the internal environment of the company by studying the company's resource conditions,financial status and corporate culture.Through the SWOT analysis model toanalyze the complex company environment,including strengths,weaknesses,opportunities and threats.This paper summarizes the achievements of the company since the implement the strategy of diversified development and the other problems during the process of development and the current problems.Through the above analysis,it is concluded that CRRC Lanzhou Co.Ltd.needs to optimize the diversified development.Also,analysing the company's industries by using Boston matrix.Defining the future development route and measures,proposing specific optimization scheme.This paper highlights the corporate culture,human resources,management system and the style construction during Implementing Optimized Scheme and Guarantee Measures.Through the study of the diversification development strategy of CRRC Lanzhou Co.Ltd..It can be used for reference for other companies in the same industry and fill the gap in this field.