Px Logistics Limited Trading Strategy Research

In 2007, the overall expense of China with the whole social logistics is reported year-on-year rises of 18.2% and reached 4,540 billion Yuan, up 4.7% points compared to 2006. Nevertheless, the constant high increasing pattern of social logistics expense has not brought the rise of profit margin of Logistics Enterprises. On the contrary, the average gross profit margin of Logistics Enterprises has declined from about 30 percent in 2002 to under 10 percent in 2007. This appearance outstandingly reflects the structural contradiction in the operation of logistics industry in our country, and also shows the whole logistics industry of our country is still in extensive operation stage. In this market, more low-end and less high-end logistics services are provided that led to a situation out-of-order competition; focusing on primary services; more unitary services but less integrative services can be found, which shows that most of China logistics enterprises have a long distance to go in demand analysis, mode innovation, operation implement and management control etc. of supply chain.Under this circumstance, a lot of logistics enterprises started to review and re-choose their management strategy, especially those who are willing to accept advanced philosophy and innovations commence to focus on new logistics segment market; develop value added service to the market, joining high-end competition and seize more market share.However different logistics company has different management strategy. Every enterprise should choose suitable target market based on analysis of self characteristics to find out the strength and weakness in different logistics tracks, to foster strengths and circumvent weaknesses, to choose target market with the changes of external logistics environment accordingly. The operational technique and value-added service innovation can not only make a company remain their existing advantage and energy, but also bring them relative high profit, which is beneficial to the sustainable development of a logistics enterprises. Meanwhile, the modern logistics market is also a globalized one, so that for a mid-to-small company, the strategic cooperation can help them to exert self advantages and make up for self shortages. Moreover, effective strategic cooperation can make these companies consolidate the relationship with the clients, and also provide an opportunity of learning each other for them and develop together. This text is based on the practicable operational experience of PX Logistics Ltd., Co, and provided a deep research on its business policy and strategy in terms of target market selecting, service innovation and strategic cooperation. The purpose of this text is to try to provide a good reference for domestic logistics enterprises especially private-owned mid-to-small logistics enterprise in option of business strategy and policy.