Shanghai Railway Diversified Business Development Strategy Analysis

The enterprise in railway can be divided into three categories as following.The first is the transport industry, mainly about passenger transport and freight transport. The second is services to transportation, mainly about Passenger transport and cargo transport services. The third is Railway Diversified enterprise, mainly about create effective for transport industry, and provided the Extended Service for the transport industry. Most enterprise just survive and in bad operation. The shanghai railway diversification have the following malpractice, First, The Railway diversified enterprise lack market conscious, and the planned economy have a bad effect. Second, The Railway diversified enterprise lack Investment and financing mechanism, The railway is losses and some Good project can not begin because lack of funds.As the above question, the author have conceived about the Railway diversified and analyze the factors about the Railway diversified enterprise. In this paper, the author used the SWOT method to analyze the strength,weakness,opportunity,threaten.and the case analysis also be used. Through the Resource matching analysis, the author have the Diversified economic development ideas of "3+X". In this paper, Competitive strategy theory, Strategic positioning and strategic thinking theory choice theory is used to analyze the Railway diversified. and the following advice is giving:Exit strategy for the Long-term losses and no-hope for survived business, Focus strategic for good development and strong profitability business.