Strategic study on China construction industrial market based on SSCP: An example

Construction industry plays a key role in Chinese national economy. It provides material foundation for continuous development both in national economy and in people´s life, and is the only road for the transformation from fixed industrial investment to practical productivity and value. With the accelerating economy development, China steps into the transformation period from traditional planned economy system to market system. Taking specific economic and political factors into account, some forms of the old system unsuitable to the market system will be broken down gradually and the other forms can be maintained. Of course, it is a competitive process. The transformation period is a reconstruction time and will last for a long time. From the view of industry development, the construction industrial organization has a long way to be reasonable, while the traditional analysis framework and basic conclusion are established by the basic assumption of perfect free market and private ownership of property. Hence, there exists a certain limitation to analyze the transformation period for China construction industrial organization. In this work, under the Market Structure & Property Structure - Enterprise Conduct - Market Performance (SSCP) analysis framework, China construction industrial market performance during the transformation period has been discussed. The analytical results will be helpful for the maneuverable strategies and have important theoretical and practical significance for prompting the process of China industrial organization optimization and strengthening construction industrial market performance.