Strategic Evolution: Enhancing China Railway Construction Group Co., Ltd. Marketing Approach for Quality Growth and Scalability

• Main Authors: Xiangxiang, Yuan, Sabar, Rohafiz
• Format: Conference or Workshop Item
• Language: English
• Published: 2023
• Subjects: HD28 Management. Industrial Management
• Online Access: https://repo.uum.edu.my/id/eprint/30620/1/8th%20ICSC%202023%20285-297.pdf; https://repo.uum.edu.my/id/eprint/30620/

China Railway Construction Group Co., Ltd. (CRCG) win the bid of the Four Seasons Hotel project, which is located in Kuala Lumpur City Centre, Malaysia in 2015. It is a residential and commercial mixed building, adjacent to the Petronas Twin Towers in Kuala Lumpur, with a building height of 342.5 meters and a total of 77 floors. It is the third highest building in Malaysia and the third highest five-star hotel in the world by then. It has 236 rooms, high-end apartments and 30000 square meters of shopping malls. The hotel is managed by Four Seasons Hotels Group and is the second Four Seasons Hotel in Malaysia, which opened in November 2018. The Coral Bay project in Kota Kinabalu Sabah held a capping ceremony on June 1, 2023. At the capping ceremony, Ma Zhanjiang, the Managing director of CRCG (M) SDN BHD (CRCGM), recalled that as early as 2015, there were very few Chinese construction companies entering the Malaysian market. With the advantages of construction speed and quality, the company's profits were relatively considerable. As time goes by, more Chinese construction companies are entering the Malaysian market, providing similar products and services. This has led to fierce competition among companies. To succeed in bidding, companies need to constantly concede profits, and the ultimate result of price wars is that the profits of the construction industry are compressed to the limit. In 2020, the global epidemic broke out, the economic environment deteriorated rapidly, and the construction market was also severely impacted. In addition, the Russo-Ukrainian War led to the rise of commodity prices. Many construction enterprises failed to bear the impact of the overall environment due to their low profits, and many of them defaulted, sued, or even went bankrupt. CRCGM has basically not improved in market development in the past three years. However, in 2023, as the political situation in Malaysia stabilized, the epidemic also basically came to an end. How can CRCGM refine its marketing approach in Malaysia's dynamic landscape to ensure robust, quality-driven expansion amidst emerging opportunities?