Study On The Development Strategy Of A Trading Company

With the slowdown of the world economy as a whole,the foreign trade,especially export industry,is facing a serious crisis.Internationally,the effective market demand is insufficient,trade protectionism increases,export growth is less than expected;and domestically,the cost of production factors increases,the competition among the same industries is intensified,the cost of products increases.Faced with such a severe international and domestic situation,how to choose suitable development strategies has been an urgent problem all small and medium sized trading companies need to address.A trading company was established in 2009,mainly engaged in the operation of complete sets of machinery products,the export of electromechanical products.Over six years of development,it had developed from a two-man trading company into a medium-sized integrated industry which now has two business departments,one manufacturing center and over one hundred of business and technical persons.However,due to the poor overall situation,it is now facing not only more stringent quality and price requirements from foreign customers,but also the risk of re-shuffle among foreign trade industry.This paper,targeted at A trading company,based on company strategic management theory and overall strategic choice,starting from the current situation and faced problems of A trading company,uses such means as PEST analysis,five forces model analysis,SWOT analysis and so on to put forward the integrated and diversified strategic conception.First,by the aid of PEST analysis and the five forces model analysis tool,it analyzes the external environment and industry competition the A trading company faces.Second,it uses SWOT analysis tool to analyze the competitors' strengths,weaknesses,as well as the opportunities and threats from the external environment,proposed the development alternative strategies.Third,based on the above analysis,it concludes that the integrated and diversified strategic conception the A trading company will carry out is not only feasible but necessary.Finally,to ensure the realization of strategic objective,it proposes the strategy safeguards recommendations including sound management system,strengthening risk management and reforming incentive system and building enterprise culture.It is expected to be conducive to the finalization of development strategy of A trading company' and provide reference for the preparation of development strategy of similar trading companies.