Research On The Development Strategy Of Fanhang Company

In recent years, due to the global economy slowing down gradually, the developed countries throw up a variety of trade barriers to developing countries’ products. Also the domestic labor costs rise year by year, which leads to the higher price of made-in-China products. All these reasons make China lose the price advantage in the international market gradually. Now the traditional labor-intensive products are not adapting to the development of foreign trade. There are many foreign trade companies in China, hence Fanhang Company has been facing the numerous tests from its establishment. After several years of development, the simple exporting business model has restricted the development of the company. Although it has taken some measures, the company is still facing more and more problems inevitably in the market competition. In the process, Fanhang company has tried to try a new mode of operation. However, due to lack of experiences and theoretical guidance, it only makes the company facing bottlenecks of development rather than a further breakthrough. How to fight in the market competition and gain a competitive advantage become the main problem of Fanhang company. In order to solve these problems, it needs to use new strategic objectives and safeguard measures.This article embarks from the management problems of Fanhang company, combined with the foreign trade industry development situation at home and abroad, according to the present problems existing in the development of the company, to found applicable strategic management theory and construct the new strategy system for the company. At the beginning of the study, we should analysis the business activities in order to find out the internal and external environments and the strengths and weakness of Fanhang Company on the basis of the current main problems of the company. Then the new system of value chain is constructed based on the theory of potter’s value chain and service profit model. The company should use the blue ocean strategy and business ecosystem theory to guide the company’s development direction and explore the advantage of resource, in order to establish and perfect the system of the company under the new value chain system. Also the company should strengthen the ties both with the suppliers and customers and the other related companies under the value chain from various aspects, combine the company’s main activities and service value, improve the supplier and the customer satisfaction, promotion of loyalty, in order to improve enterprise’s profit and applied to enterprise development.This article combines portter’s value chain and the service profit chain for the first time and construct new value chain, which is the main innovation point. The conclusion of the value chain can be used to guide the company’s development strategy, improve the innovation in the course of development, and the development of the company.