Research On The Related Diversified Strategies Of CR Company

With the changing of railway construction market, the railway construction enterprise has taken the initiative to change the strategy and management structure. In order to occupy more market and open up new markets, to avoid the risk of a single business, some railway construction enterprise with forward-looking strategic vision has developed and implemented the related diversification strategy, explored other related areas such as the city rail transportation, highway, railway, port, without giving up the railway construction market.As a leading domestic railway construction enterprise, the CR company mainly engaged in the railway engineering sector, city track traffic engineering sector, industrial products manufacturing, design and consultation, operation&management. Among them, the four railway electric industry is the dominant industry business which has been a key role of the development of CR company; the profit from project construction accounted for too large, product manufacturing, design and consulting in the initial stage, project operation has not been accounted.In order to adapt to the changing market situation and more fierce competition, this paper uses Potter’s five forces model, SWOT model and other tools for strategic analysis of market opportunities and external threats, the competitive advantages and disadvantages of the CR company. The paper found that the industry barriers to entry reduces gradually, the fierce competition trend is obvious, but the industry grows fast; four high-speed railway power system integration market is a typical oligopolistic competition structure, general speed railway, local railways and industrial special railway line are a fierce market structure. The bargaining power of CR company as buyer is strong, weak as a seller. The advantages and disadvantages of the CR company is very obvious, the CR company has the leading general contracting ability of the railway construction and construction management capabilities, but the business is relatively simple, mainly concentrated in four aspects of electric railway. And, should be strengthened the capability of the CR company in technological innovation, cost management, human resources management, capital operation, management and other aspects to be improved, technology and human resources.On the basis of the strategy analysis, this paper put forward the strategic aim of the CR company. CR company should choose to implement the related diversification strategy, continue to maintain and strengthen the Railway four electric industry, to extend and expand along the four electric industry chain, to develop the capital operation. According to the market competition situation and internal resources situation, the paper also puts forward that the CR company should choose to implement the cost leading strategy and the differentiation strategy. In order to make the enterprise strategy and competitive strategy effective, the CR company should focus on strengthening science and technology innovation management and human resource management.Finally, in order to achieve the strategy, this paper puts forward relevant opinions and suggestions such as to strengthen the group management and control, market management, financial management, innovation management, human resource management.