Study On The Development Strategy Of A Railway Logistics Company

Under the historical background of high concentration of the development of the logistics industry in China, the reform of the railway industry towards the logistics industry is continued to deepen. The manufacture, management and living environment of railway logistics enterprises have undergone profound changes and faced directional selection. Under such circumstance, logistics company A that in a transition period of development, is in a dilemma that faces increasingly fierce market competition, convenience of road transportation, low-cost of waterway transport and limitations of the closed out-going policy on coal resources. It needs urgent thinking on the questions that how to seize the national policy support for the logistics industry and use the golden development opportunity of the railway management mechanism changes, to assess the situation, broaden strengths and avoid weaknesses, build core competitiveness, and develop appropriate development strategy for companies.Firstly, the article introduces the development status of the A railway logistics company, and detailed analysis of the company’s current external environment has been carried out by the use of PEST environment analysis, five forces model analysis, and evaluation matrix of the industry. It concludes that some factors have brought good opportunities for modern logistics development for rail logistics company A, such as the national policy environment, the transformation of the railway operating mechanisms, the advantages of the economic development in Guizhou Province, the high-speed growth of the logistics total demand, the high railway logistics industry barriers to entry and the low carbon modes of transportation. But some other factors brought big threats for the development of the companies, such as other convenient modes of transportation, growth of the local logistics enterprises, and the entry of foreign logistics enterprise. Furthermore, the policy limitation of coal exporting in Guizhou, too much dependence the profitability is on station segment, and financing difficulties for logistics base construction are all threats for local companies.Secondly, the article uses radar analysis, core competitiveness matching analysis and other methods to give detailed analysis on the internal elements of the company. Then it gives out the conclusion that the company has its superiority, such as a comprehensive logistics network, a higher level of economy scale, a stable customer resource, corporate culture construction, and medium-and long-distance transportation, etc. However, the company’s debt ratio is too high, the short-term solvency is weak, and profitability and level of management are both low. In addition, market development capability is weak, the quality of the workforce is low, logistics technology lags behind, and it has too much institutional constraints. Such disadvantages impede seriously to the development of the company.Thirdly, it uses SWOT analysis and quantitative strategic plan matrix (QSPM matrix) tools to analyze alternative strategies to adapt to the development of the company. After the comprehensive analysis, the conclusion is that the proposed suitable overall strategy for A railway logistics company are the integration growth strategy and alliances development strategy on cost leadership. Finally, the article decomposes the strategic implementation target, develops the measures of the strategy implementation guarantee and presents control recommendations.