The Research For Diversification Strategy Of Shandong Expressway Company Limited

For the expressway development, our country just spends several years achieving the same the effort which foreign countries have spent half an century nearly to get, and the extent of expressway in use is the second one in the world. Main network of the national expressway has been completed basically, which is playing an influential role to the development of economy and society. One of the most important reason that the highway can rapidly expand, is the expressway industrialization with characteristics of diversified financing, the BOT pattern, the commercialized management, further more the reason also promotes the coming up of a lot of enterprises of expressway operation.With the completion of large-scale expressway construction and the establishment of Acts such as "Turnpike Management Regulation", enterprises of expressway operation are facing the challenge to survive. Limited space of expressway industrialization development, scarcity of expressway projects and time restriction of the franchised rights lead to conflicts with enterprises' expansion and long-term management, then it is necessary for expressway operation to take diversification strategy, to achieve industrial reforming and the sustainable development.This paper, from external and internal environment analysis of Shandong Expressway Company, analyses policy risk, operational risk and so on, and points out advantages of financing, management etc. Through the SWOT analysis, the paper gets the conclusion of implement of the related diversification strategy for the company.With related theory, the paper from principles and conditions of diversification strategy implement, demonstrates the feasibility, and points out the access to transport infrastructure industries. Moreover the paper analyzes the prospect of the railroad and the container harbor development, the financing system, the income level and so on, and proposes the various investment region and the mode of entry. At last, the paper analyzes the risk which the Shandong Expressway Company may meet during the diversification strategy operating in future, and illustrates the measurement for safeguard.Combining the present situation and the tendency of Chinese expressway development, the paper comprehensively analyzes the implementation of diversification strategy from the feasibility, the industrial direction, entering strategy, risk-avoiding ect, and provides the reference for the Shandong Expressway Company as well as the other expressway enterprises for their sustainable development...