Study On Competitive Strategy In Latin America Of China Harbour Engineering Company Limited

Along with the development of economic globalization,the economic interaction between countries are becoming more frequent.As a result,China’s oversea engineering and contracting business has experienced rapid development,especially some countries and regions in,Asia,Africa,and the Middle East,however,the progress in the Latin America and the Caribbean is relatively lagging behind.With the extension of the One Belt And One Road strategy in Latin America,the f’oundation of China-Latin American Cooperation Fund,the motivation of Chinese-Latin cooperation framework of infrastructure projects,support of Chinese Government Concessional Loan and Preferential Export Buyer’s Credit and the Internationalization of renminbi,there is a increasingly greater demand for infrastructure in Latin America which means that Chinese Engineering and Contracting Enterprises are receiving a golden age for blossom in Latin America.Under this circumstances,China Harbour Engineering Company,Ltd.(hereinafter referred to as China Harbour)in Latin America’s business development has obtained certain result,but still have considerable potential of expansion,China Harbour should seize this strategic opportunity to further advance the business in Latin America.At the same time,to face the fierce competition,China also should formulate appropriate region competition strategy based on a scientific,accurate and rigorous analysis of its external conditions in Latin America,regional industry competition environment and its inner-conditions and competence capabilities.To choose the more appropriate basic competitive strategy of China harbour in Latin America,this paper makes an in-depth analysis of Latin America’s macro-economic and political,cultural,technological environment and the status of infrastructure construction industry,therefore,clarifies its opportunities and threats for development.Then,through analyzing and studying the actual status,internal resources and capacities of China harbour in Latin America,logically the author makes clear China Harbour’s advantages and disadvantages in competing environment.By means of empirical analysis,this paper studies some typical regional competitors and draws lessons from their better development experience.Through the above analysis and research,based on the corporate strategy and company goal of China Harbour’s headquarters,external environment in Latin America and its own accessible resources and capacity,this paper studies the applicability and feasibility of the three basic competitive strategies for China Harbour’s business development in Latin America.Considering its own capacity features and external environment.China Harbour should choose the differentiation strategy as its competitive strategy in Latin America rather than centralization strategy and low cost strategy,because this strategy could help China Harbour to avoid vicious"price war"with other international engineering enterprises in Latin America,and the most essentially of all,China Harbour is really capable of providing differentiated quality products and services to the society,customers and the government.From the perspective of the operability of the implementation of dif-ferentiation strategy in Latin America,China harbour is in both properly internal and external conditions such as marketing advantages,advanced technology,preeminent integration ability,outstanding information acquisition ability and government support due to being stated-own company which all can make it possible and feasible to provide differentiated products and services.The paper points out that China Harbour’s differentiation strategy in Latin America should be implemented by varifying business models,enriching industry scope,further brand building,optimization of market layout and structure,and upgrading business methods.In terms of differentiation strategy implementation measures,this paper puts forward to try more large integrated projects in Latin America,to upgrade the traditional engineering contracting mode to"investment-construction-operation"integration mode,lean,to applicate three-dimensional marketing,to continiue the brand buidling,and to develop the business in multi-dimension and multi-angle.Creatively,the author suggests the establishment of industrial investment and operation company in Latin America to promote the implementation of the strategy of differentiation.From the perspective of differentiation strategy safeguard measures,the author come up with various operational,concrete and innovative safeguard measures related to project management,human resources,technology development,risk control and compliance management.Through the implementation of differentiation strategy in the Latin American region,China harbour must effectively gain greater competitive advantage to compete with the international first-class contractor,and could be expected to develop in quicker,healther and more sustainable way to get "materialization"of its business in this region.