Taking the 5th Company of China Railway 2th Bureau Group as the research object, this paper deeply analyzes its competition strategy by using theories and methods of strategic management on the basis of previous studies. First of all, the background, significance, thoughts and methods of this study are introduced, and then, a brief review of definition and basic theories, types of competition strategy and analysis methods of strategy and strategic management is carried on. Secondly, PEST analysis and Michael Porter's Five Force Model is used to analyze the external environment of the 5th Company of China Railway 2th Bureau Group from aspects of macro environment, industry environment and competitors. Quantitative analysis of opportunities and challenges of the company is made by External Factor Evaluation Matrix (EFE), and one of advantages and disadvantages in internal resources and capabilities is made by Internal Factors Evaluation Matrix (IFE). An overall analysis of strength, weakness, opportunity and threat in construction market is based on SWOT analysis. Finally, according to the company's vision and reality, this paper puts forward a matching strategic direction and corresponding competition strategies. On the basis of competition strategy, implementation and corresponding safeguard measures to further improve the company’s core competitiveness and overall economic benefits are also discussed.
Hopefully, the results and viewpoints of this study will have certain reference and feasibility not only for the company to determine a more scientific, reasonable and effective competition strategy, but also for the reform, development, competition and innovation of peers in construction industry.