Study On Shandong Hi-speed Group Co. Ltd. Overseas Competition Strategy

Since the establishment of Shandong Hi-speed Group Co. Ltd., (herein after call SDHG),under great support and policy support from government, the Group’s business has been widely considerable development. At the beginning of the establishment, SDHG inherited a large number of overseas construction market through merger policy, financing mergers and acquisitions. However, at the same time, overseas markets competitions is becoming increasingly fierce under the pressure from other central enterprises with strong capital, and streamline procedures capable technical output type private companies.This paper intends to use the core competitive advantage, competitive strategy management, organizational behavior and other relevant theoretical knowledge, combined with personal overseas work experience, comparing strategic management theory, competitive strategy theory and the study of Chinese engineering companies, using PEST and SWOT analysis tools, we can get out that pointed SDHG should improve the position on global value chains to achieve the goal of profit maximization.Based on the analysis on three basic competitive strategies which form Michael Porter, multinational localization strategy is proposed for current development of SDHG. Based on the existing layout of the global market of SDHG, analyzing the necessity and feasibility of taking multinational strategy and company’s industrial objectives and regional objectives for system planning, project selection in future should be tended to both ends of the value chain of the global engineering contractor profit but withdraw from the low end of the value chain of industrial markets. In the global layout, SDHG should strengthen the existed traditional market, and in the new emerging markets, SDHG should lay the foundation for further broaden the market.In the implementation of the multi-country strategy, SDHG should take concrete measures in on strategic alliances, strategic acquisitions and strategic resources. Through a joint bid with the relevant companies to improve our competition level, reducing financial risk and achieve new international financing model; through across the host country trade and institutional barriers to ensure the smooth implementation of the project. At the same time, take a reasonable tax avoidance to avoid foreign exchange and legal risks, strengthen international human resource management and information management for the protection measures of SDHG for further advantage in the high-end market competition.International engineering contracting market is so vast that there is rare depth study on it. Relying on the prospect of clear judgment, measures for the implementation of SDHG is proposed to supply reliable information on promoting further development of SDHG.However, due to the variability and complexity of the overseas market environment, as well as the project resident dispersed, this research paper did not analyze deep enough. In this paper, competitive strategy is just relying on current international environment. I hope in future work relative research and study would be further more completed.