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Research on Business Model and Optimizing Strategies of SZBG

Author RaoJunXiang
Tutor ChengYu
School Xiamen University
Course Business Administration
Keywords Public Transport Services Shenzhen Bus Group Co. Ltd BusinessModel
Type Master's thesis
Year 2014
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As public transport services is not only the important part of urban economy, but also an impure public goods, which makes its nature combine with social and economic attribute. Under the implementation of public transport priority, public interest and economic interest should be pay equal attention. Taking the view of the mechanism of public transport sustainable development, there is no better performance in balancing the interests among the government, enterprises and public in main cities at home and abroad. Speaking of this, many domestic public transport enterprises are running their business into the ground, even operating in debt. Moreover, transport services provided fails to meet the demands of the citizens while transport enterprises fail to satisfy the interests of the staff. The stability of industry is weathered a severe test. Therefore, the study of business model in public transport has a positive and practical value.In this paper, Shenzhen Bus Group Co., Ltd will be the study object which has faced fiscal policy of transport adjustment for several times within five years. The corporation was unable to recognize its development orientation and operating strategy and the complexity of benefit relations which leads to developmental difficulty. The paper begins with the analysis of the value creation principle of the corporation from the enterprise value proposition aspect, developing strategies aspect, key resources and capabilities aspect, utilization strategy aspect, and value of achievement aspect. On the basis of these five aspects, and by means of the principle of business model, field survey and case deductive method, the paper finds out problems of business model existed in three ways, value and orientation proposition, resources developing and utilization strategy. With years of work experience, the author presents the idea of the consistency of transport business in both economic interest and public interest to some extent. Also, the author believes that enterprises should follow the market rules and make rational decision. Meanwhile, transport enterprises should take advantage of operating experience, actively participate and give suggestions to the government in supporting enterprises and industry sustainable development, engage in the construction of communities and strengthen the operation idea so that to create a better environment for development. Finally, the paper gives some advice in several aspects, including developing strategies and utilization strategy, hoping to help Shenzhen Bus Group Co., Ltd break the dilemma. The paper analyzes enterprises of traditional public utilities on the basis of business model and fully interprets public utilities operations part by part, in attempt to provide a new perspective on urban public transport operation so that different groups of people can take advantage of this paper to understand the rules and characteristics of public transport industry.

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