YN Strategy Study For Profit Increading During Industry Recession Period

International forwarding enterprises is one of the pillar industries of China’s foreign tradeimport and export business which boost China’s total foreign trade import and exportbusiness, and made important contribution to earning foreign currency of the country overthe past30years. Especially, in recent years, along with our country continued large-scaleinvestment in the facilities of main ports, such as TianJin, Shanghai, Ningbo, ShenZhen,GuangZhou, fully mining the potential of these ports, highly developing the port workefficiency and service condition, booming the local area economy. We can take Shanghaias example, Shanghai port handling capacity was up to0.736billion tons, year-on-yearrises of1.1%, keeping the Top one situation over the world. Huge of freight forwardersgrow up based on well equipped infrastructure which also attracted many forwarders’investment from overseas. However, we have to keep realistic mind to see that manynegative factors still exist, such as global finance crisis and European debt crisis as well assoaring trading friction. The freight forwarding market scale is keeping shrinking with theadding risks which caused worse and worse conditions of all the freight forwardersespecially middle-sized and small-sized ones in the hard competition market. With regardto this current environment, the freight forwarders have to adjust the strategy to change theoutdated business mode, integrate company internal value chain system to enhance selfcompetition capacity to get more marketing share and profit in the current internal andexternal environment.A middle size international forwarder---YN, will be taken as the objective for analysis inthis thesis. Starting from the international and domestic market environment, formulatingand implementing service, product differentiation and diversification of strategies toimprove the necessity of corporate profits, and put forward the concrete strategy andimplementation planYN is a company which is eager to formulate and implement the service, productdifferentiation and centralization strategy based on the international and domestic marketconditions to achieve more market share and profit margin. Furthermore, the thesis states that YN company needs adjust the strategy to overcome the power of five forces thatInvasion of new competitors, threat of substitutes, the buyer bargaining power, the seller’sbargaining power and the competition between existing competitors stand steady in themarket. According to the theory of value chain and standpoint of analysis of YN’s internaland external surroundings and exit problems, the theme aims to break the traditional valuechain and re-organize it to develop the competitive capacity in the market. Moreover, thethesis Induces SWOT analysis method to analyze the company’s strengths, weaknesses,opportunities, threats, thus guide YN company to avoid the fierce competition in traditionalmarkets, diversified development mode, play their own advantages in the new market,weaken the disadvantage influence on competitiveness weakening, to seize the currentopportunity and avoid potential threat bring to the company by the uncertain risk.