The Research On Market Development Strategy Of BJ Company Passenger Transportation

The former Ministry of Railways implemented the reform of the separation of enterprise and administrative management in March 2013, which completely put the railway transportation into the market. Under this background, how to adapt to this change and how to better develop in the passenger transportation market are challenging B J Company.This thesis focuses on summarizing the theory of the enterprise strategy and competitive strategy and making a comprehensive analysis on the external environment, the market and industry environment, the competitive environment, the history resources, and the core competencies of the enterprise. By using the five forces models, the conclusion can be drawn that the key factors which affect BJ’s competition are:the level of economic development, population structure, education level, customer demand and competitive advantage.Based on the analysis of BJ’s external opportunities, threats, internal strengths and weaknesses and by using of the SWOT matrix, the following strategic options can be analyzed:the leading development strategy, the diversity development strategy, the cost-optimized strategy and the market tightening strategy. Through the evaluation of the four options, we get the idea that BJ Company in terms of passenger transportation market should make a good use of its external environment and a favorable market environment to combine the leading development strategy and the diversity development strategy into an advantage-extension integrated strategy. The essence of this integrated strategy is to use the opportunity to exploit its own advantages to the full and dominate the market.According to the integrated strategy mentioned above, this thesis proposed four principles, namely: ① to have a long term perspective based on the market. ② to implement the strategy steadily based on the resource distribution.③ to adjust the strategy based on process.④ to centralize the leadership to carry out the strategy. This plan can be divided into three stages and every stage takes three years to implement. This thesis also proposed seven methods to solve the facing problems, namely ① to develop the railway construction in a fast pace and to improve the network structure.② to develop the products that can meet the market’s needs. ③ to improve the transportation capacity to meet the development need of a new product.④to improve the customers’service based on the customers’experience.⑤ to extension the industrial chain and explore the diversified business. ⑥ to develop the enterprise culture and improve the staff quality. ⑦ to optimize the internal management and cost control.By studying the strategy of passenger transportation market, this thesis established a market direction that is fully close and meets the business direction. This is not only the business transformation’s need, more importantly it also created a new path for China railway transportation to fully enter the market, to improve the economic efficiency and to explore the social development.