Research On The International Engineering Contracting Market Development Strategy Of CJIC Company

In the context of deepening of global economic integration,the development of China’s international engineering contracting industry has experienced start-up,steady accumulation and rapid development,and is gradually stepping into a new stage of transformation and upgrading.At present,China has become the largest country in international engineering contracting,with the total international project business accounting for 25.4 percent of the global total.However,the international project contracting industry was trapped in the predicament of capital shortage after the global financial crisis.According to the analysis of the US " Engineering News Record"("ENR")in 2020 on the list of the"World’s Top 250 International Contractors" last year,in 2019,the total overseas operating income of the 250 companies on the list fell by 2.9% compared with 2018.Moreover,the infrastructure projects,in the participating countries along "One Belt and One Road" are trending toward to the integration of investment,construction and operation mode,with the characteristics of capital intensive and technical complexity.Under the strong competition of contractors from developed countries with their capital and technological strength,the external environment for the development of our international engineering contracting industry is unprecedentedly severe.In recent years,the phenomenon of sovereign default and heavy debts burden have been increasingly striking in some African countries where converged by Chinese contractors.Obtaining construction projects via traditional mode and the traditional process of market development have become even harsher than ever before.Referring to a survey conducted by the China Association of Foreign Contractors,"In 2019,the decline trend of international project contracting business in the African market accelerated significantly,with the value of new contracts signed by Chinese enterprises in the African market reaching US $55.93 billion,down 28.7% year-on-year.A sudden onslaught of Covid-19 has continuously proliferated rapidly without control all over the world since the beginning of 2020.Looking around the globe,we can find that the world has been badly influenced by ups and downs of the Sino-US trade frictions,frequent tensions in some regions,not to mention the pandemic spread which has posed seriously adverse impacts,such as the global economy is moving toward into a deep recession,the funding gap for international infrastructures will be further enlarged due to the mounting risk aversion of capital from the international multilateral financial institutions,the global industrial and supply chain have been forcibly decoupled,the overseas projects of Chinese contractors have been largely shut down,the market demands have severely withered.The international project contracting industry had suffered a catastrophic strike.Under the influence of pandemic and turbulent situation unseen in a century,the international business environment is becoming more and more complex and volatile.How to identify risks and opportunities in the uncertainty of the world,and how to make the right business choice are the issues to which enterprises need to attach great importance.China Jiangxi International Economic and Technical Cooperation CO.,Ltd.(hereinafter referred to as "CJIC Company")is a comprehensive export-oriented provincial state-owned enterprise,who is acted as one of the Vice President Company in China International Contractors Association.The core business of CJIC covers international project contracting,foreign investment and trade,real estate development,mineral resources development,etc.CJIC has totally implemented more than 600 projects in Africa,Asia,Latin America and other regions.Currently,CJIC has stationed and set representative offices in nearly 30 countries.In this paper,CJIC is taken as the research object in the dissertation.The formulation and implementation safeguarding measures of CJIC Company’s international engineering contracting market development strategy are researched in detail in line with the relevant management theories and analytical tools.First of all,the paper sketches out the introduction and development history of CJIC,and bottlenecks faced in the market development of international engineering contract,and gives an analysis of the internal environment of CJIC company from the dimensions of human resource,technical qualification and financial situation and market development ability.In the forth chapter,in accordance with the PESTEL analysis method,this paper constructs the external environment analysis framework for CJIC company’s international engineering contracting market development,i.e.from the political,economic,social,technical,environment and legal dimensions,and concludes that enterprises need to focus on the country-respective risk analysis under the epidemic situation in the early stage of overseas market development,focus on and actively tap into the needs of overseas project owners,and innovate the project operation mode as well as improve the ability to control risks.Based on Porter’s Five Forces Model theory,this paper analyzes the competitive environment of the industry from the perspectives of the competitiveness of existing competitors in the industry,the threats brought by potential competitors,the bargaining power of suppliers,the bargaining power of buyers,and the substituting power of substitutes and concludes that the competition in the industry is extremely fierce.With the transformation of international infrastructure projects to the integration of investment,construction and operation,the bargaining power of project stakeholders is getting stronger and stronger.In the fifth chapter,this paper moves on to adopt SWOT analysis tool to observe the advantages and disadvantages of CJIC company,as well as the opportunities and threats derived from the external environment.By constructing SWOT analysis matrix,the SO,WO,ST and WT strategies matching the development of enterprises are analyzed and obtained.It is concluded that enterprises need to break through their own limitations,strengthen organizational learning ability,adopt competition and cooperation strategy,broaden the development boundary of enterprises with the concept of connection and symbiosis.The sixth chapter of this paper comes up with the strategic objectives,strategic priorities and implementation steps.Moreover,measures to implement the strategy have been offered from the perspectives of coordinating epidemic prevention and control,carrying out business in an orderly manner,forming strategic alliances,strengthening management communication and performance guidance.In the seventh chapter,the author proposes multiple safeguard measures for strategic implementation from the aspects of optimizing the organization management system,strengthening the awareness of compliance operation,enhancing the ability of risk control,cultivating innovative thinking,and establishing the quality brand image and so on.The purpose of the study is to provide some valuable advice for those "go global" enterprises to formulate the effective strategy of market development and to promote their transformation as situation requires.