Transformation And Upgrading Of The Pearl River Delta Companies Strategy

From 2007 to 2008 period, the labor-intensive export industry in the Pearl River Delta fell into plight from following challenges: "RMB revaluation", "Labor Cost risen", "the Reduction in Export Rebates", "Price Soar in Global Raw Material Market", and "the Accelerated Coastal Region Industry Transformation and Upgrading Policy". The implementation of Labor Contract Law in 2008 had led to huge influence in the Pearl River Delta, while the "Subprime Mortgages Crisis" broke out in America and turned out to global consumer demand recession. From September 2008, the export volume of Mainland China had sharply decreased for several months in a row, made the hardship even more unbearable for coastal region export industry. Influenced by these detrimental factors, Candor International Incorporation who dealing with mainly US lighting business, faced the challenges of increased cost, and delayed delivery, and suffered a great loss in company reputation.With the leadership thinking "Turning crisis into opportunities", Candor International Incorporation decided to accelerate upgrading and transformation in order to avoid being eliminated in the global wave. How to improve in customer satisfaction and maintain the good relationship are priorities. Medium to long term strategies aimed at becoming the inventor of value supply chain in the lighting industry through the following means: consolidation of the enterprise organization, the boost in managerial effectiveness, the integration of information system, the design of SOP and supervision mechanism, and the enhanced management and integration of supply chain to reduce the cost. While stabilizing current customer relationship, the company also focused on developing new sales territory. In the long run, facing the increasing cost pressure in Pearl River Delta, the company desires to move forward to a whole transformation after the goal of organization upgrading and transformation stage is achieved, expand its supply chain to the lower-cost inland region to ensure the company's long-term competitiveness.