The Study Of Development Strategy Of Dahuachem International Economic And Trade Corporation

In recent ten years, Chinese foreign trade industry has experienced many major events, such as structural reform, the acceleration of economic globalization and the appreciation of the RMB. State-owned foreign trade corporations are facing the survival environment of constantly changing. Especially, after the global financial crisis of2009, the foreign trade industry encountered unprecedented difficulties. Dahuachem International Economic and Trade Corporation is a typical representative of state-owned medium-sized foreign trade enterprises. Although during the past26years many achievements have been made, the company now is faced with a lot of difficulties. Therefore, to research the future development strategy is particularly valuable and realistic for the companyFirstly, this article use PEST analysis method to introduce the macro environment which the company is facing, including economic environment, political and legal environment, social culture environment and technology environment. Adopting Michael Porter’s five competitive forces model and strategic group diagram, analyze the industry environment of foreign trade, and draw a conclusion that Chinese foreign trade industry will gradually return to steady growth but enterprise cost pressure will increase obviously and corporate financing will be more difficult. Secondly, through internal analysis and comparison with competitors, ascertain the company’s core competitive advantages—good business reputation and strong financing ability, also main disadvantages—outdated business model and loose organization structure. Thirdly, using SWOT analysis matrix, research four optional strategies respectively, then considering other influence factors such as inheritance of enterprise strategy, select a reverse strategy (WO) of specialization development, and put forward a series of aspects need to be changed. After that, formulate strategic objectives in the next decade which is to become a large-scale professional trade service provider in chemical industry and aquatic product field with import and export volume above$1billion. Finally, draft the overall requirements of strategy implementation and control, including strategic target decomposition, organization change, resource allocation, strategic leadership, control and evaluation index, etc.