Research On The Railway Construction Enterprises Diversification Strategy Transformation

With the further progress of Macro-Economy and a surge of fixed assets invests in these years, the Construction industry has achieved rapid development. In this course, it has emerged a large number of outstanding construction enterprises in market competition, such as China Railway Construction Corporation and China Railway Construction Corporation and so on. After years of expanding, China’s large-scale railway construction enterprise has become the one of the strongest company from the market scale to the ability of the construction around the world, but this has largely depended on the Chinese rising infrastructure investment in recent years especially the super speed’s railway investment. In2011, the investments of national railway have faced the problem of financing and then affect the railway infrastructure construction, the traditional railway construction enterprise has suffer from the market upheavals. This change of market environment makes the enterprises to consider the transformation of the business; the diversification has become an inevitable choice for the future development of the enterprise.This paper has analyzed the market situation faced by China’s railway construction enterprises and the problems it had from international and domestic viewpoints based on the literature review, and has argued the enterprises how to choose the way of diversification separately from the product diversification、the longitudinal diversification in value chain、the diversification of geographic expansion mainly considering the internationalization、the plurality of simultaneously combined diversification to the mixing diversification. And then it has brought up the path to implement diversification for the railway construction business enterprises. Finally, the paper has, taking China Railway Construction Corporation as an example, conducted an empirical study in view of its diversification strategy transformation.