The Analysis Of The Competitive Strategy Of SDV

In past 10 years, Government,Enterprise, Theory Research Institute, various Circles of Society gave their most concerns on Logistics development which also has become one of economical hot spot. Under this circumstances, different logistics plan has been proposed and a lot of logistics parks appeared everywhere in China. Some famous international logistics corporations came to China to develop their business. As a new industry, Logistics has been developed a lot in past years.In 1997,SDV International Freight forwarding corporation limited opened their 1st office in China to develop their business. With rapid development of Chinese Export Economy in past 10 years, SDV China also reached a great achievement. As SDV South China office which developed a lot base on good seaports resource&'Processing Trade' in Pearl River Delta area as well as the superior geographical location of HKGHowever, by financial crisis starting from the Quarter-4 in 2008 and the orders were reduced a lot, the export enterprises in PRD especially for some manufactures who are specialized in "Processing with Supplied Materials" really suffered a lot. As a result,some factories were closed down so Logistics industry as one of session for Export Trading was affected immediately. Airlines& Shipping Lines' was in'NO-LOAD'running then the freight had to be turned down to the lowest level due to unbalanced supply and demand relation, job& salary cut,some shipping companies including some shipping lines with a long history went bankrupt or had to terminate some lanes,withdrew some ships or flights during this downtown period,the whole market stepped to a critical supersaturation so an over-competition is unavoidable. SDV China suffered a lot especially loss on gross margin although kept a certain increase on volume. In some specific markets especially for traditional European& African market, SDV lost their market share to those competitors who were implementing the'low rate strategy' before;luxury customers were also lost who contributed a lot on gross margin per unit in the past;also affected by financial crisis and over-competition,some key customers export volume were decreased; it's same for Project Logistics. Internally,due to lack of people encouraging mechanism,SDV also lost some key sales people who took away a lot of company customers, operation people lost further level down the operation quality which resulted in a lot of customers complaints, poor productivity, operation cost increment. Due to an unreasonable internal organization,it's difficult for HR to allocate the manpower well which made the HR cost increase a lot but productivity was going down.Under this circumstances, this article is to do an analysis on existing management& competitive strategy of SDV then find out what the reason is for the problem as mentioned in last paragraph. With referring to Michael Porter's'Competitive Theory',S.W.O.T analysis and base on current internal& external environment, the article makes an integrated analysis on SDV competitive environment& sources,reset an appropriate market position of SDV then finalize a core competency which is Air& SEA Freight Forwarding service. Base on this core competency and according to the current market& competitors situation, make a new competitive strategy which is more suitable for SDV development.it's inclusive of'DIFFERENTIATION' strategy, 'FOCUS STRATEGY','COST LEADSHIP'strategy. In order to ensure these new strategies' implementation,which need SDV further optimize the company organization, strengthen internal scientific management and the construction of enterprise culture, deliver more internal trainings to staff for service quality improvement, increase company benefits to keep current staff,take the financial tool to minimize the risk of company. Externally, strengthen the supplier management to decrease the operational cost, provide higher quality service& more competitive rate to customers in SDV specific field, also provide the CUSTOMIZED service for different customers, increase the customer's satisfaction in order to lead up against competitors.