Research Of Dongchang Corporation's Competitive Strategy

The rapid progress of China's urbanization has brought unprecedented opportunities to China's construction industry, while frequently adopted macro economic policy will render the competition of construction even fiercer.Dongchang Company is the restructuring architectural decoration of Shanghai Construction Group which located in Shanghai, and its comprehensive strength ranks in the industry are above average. Advantage of relying on local development and group support, the company has accumulated a certain amount of customer resources, capital and market position. However, after privatization, lost the support of the group, facing a huge market, the company has not taken its profitability; Facing more and more competitors, the company has not made a clear competitive advantage; Facing Shanghai construction enterprises "going out" strategy, the company did not prepare accordingly. Therefore, carefully examine the current situation, to re-evaluate their business environment, competitive strategy choices are targeted to make the company truly gain the initiative, to avoid risks, bigger and stronger.In this paper, Dongchang Company for the study to explore the architectural competition in strategic choice and implementation. First analysis of the external environment, with the five forces model of competition in the state of the industry, know the opportunities and the threats which the company facing; identify the company's strengths and weaknesses through analysis the internal resources and capabilities Through analysis, we found that the core competency of the Dongchang company is the ability of project management at high-end decoration., but the company can get chances of winning contracts. Through reasonable low price in the Mid-market.Summing up all the circumstances, the paper also adopted a quantitative strategic plan matrix to assess the strategy, proposing that the "Intensive Overall cost leadership Strategy" is the most suitable strategic option for Dongchang to further develop in the future. To implement the Overall cost leadership strategy, the paper analyzed the approaches to low down cost from the perspective of value chains, emphasizing on control of structural cost and implementation cost, and to restructuring the internal and external value chain of the company, in order to gain competitive advantage.Strategy theory of building decoration industry is far behind other industries, so this paper, undoubtedly have a strong theoretical and practical significance for the development of company as well as provide a reference idea for the similar company through the research about Dongchang company's competitive strategy.