Research On The Competitive Strategy Of SDC Design Institute

SDC design institute was founded in the year 1959. Over the past 50 years, the institute has been developed gradually from a public institution under planed economy into an independent enterprise which assumes sole responsibility for its profits & losses and participates actively in market competition. With great improvement both in business scale and profitability, SDC is now acting as a powerful competitive enterprise in the exploration & design field. Although SDC has achieved a lot on her developing way, many problems, such as unfit OBS, incomplete enterprise culture and the in out-dated management modes in marketing, in human resource management, in project management as well as quality management all of which hinder the further development for SDC towards modern engineering company. Facing the ever-fiercer market competition, SDC shall carry out practical strategy scheme.From the view of external development environment of SDC, China is in the critical period during which the strategy of bring China into a moderate prosperity in a well-rounded way is implemented comprehensively and the progresses of industrialization, urbanization, mercerization and internationalization are speeding up. Since the industry of exploration & engineering design which service directly the national construction is on the front-end of fixed-capital investment, so it is the decisive factor in the formation of fixed-capital. Lots of business opportunities have offered to SDC by the rapid development of national economy and the continuously increased capital investment. But with the protective period of WTO being ended, more and more overseas engineering company are granted to run business in China, so fierce challenges, violent competition and more uncertainty occur on the developing way of SDC. From the view of internal conditions of SDC, over the past years of rapid development, the capacity of risk withstanding has been obviously enhanced, the technology competitiveness has been improved and the overall quality of staff has been raised, and good reputation has been built in the industry field. However, for SDC there are many defects existing in the business mechanism, in the management mode and in the innovation system.In this paper, with SWOT analysis approach being applied, basing the related strategy theories, the feasible competition strategy of SDC is discussed. And the following strategies are recommended:The differentiation competitive strategy shall be applied by SDC. Via service product differentiation tactics, SDC shall focus on the LNG engineering field and work hard for contracting the LNG works which are to be awarded in the internal market of the Group Company. Via service quality differentiation tactics, SDC shall build a customer-oriented service system expanding and extending service function. Via marketing differentiation tactics, making full use of policy support from the Group Company, SDC shall emphasize the internal market development.Moreover, the specific support measures for such differentiation strategy are also discussed. Those measures include optimizing the OBS, strengthening Cultural Construction, improving Human Resource Management, enhancing Quality Management, advancing Technology Innovation, extending the Market Development, promoting project Management and improving the Service Management. Those support measures are conducive to SDC's core competence, and only the power of core competence being greatly promoted can SDC become the first class engineering company in the industry field.