Analysis Of The Diversification Strategy Of Huamao Logistics Changzhou Branch

Since reform and opening-up,a lot of international freight forwarding companies have entered China market.Supported with their advanced service theory on logistics,worldwide service network and mature logistics operation system,they gradually owned about 80%of the logistics market in China,and therefore extremely narrowed down the domestic forwarders' living space.The market rule of international freight forwarding is not rationalized,the enterprises dedicated in international freight forwarding are small,compete with a single manner,gain with a simple approach.These enterprises are in a weak position,with the shortage of professional staffs and logistics technical competence.While Chinese Integrated logistics service just started,which went with its characteristics of huge market but small size logistics enterprises,poor management skill,lack of professional participants,poor efficient freight forwarding.In early 2016,CTS International Logistics Corporation Limited brought up the development planning of Double Hundred increase on three-year sales revenue and net profit from 2016 to 2018.CTS Changzhou Branch competes with its traditional freight forwarding business in Changzhou logistics market,its sales revenue and net profit can't meet the development planning brought up by headquarters.This paper makes an analysis on the detailed situation of CTS Changzhou Branch,stands on its own strength utilizing its own brand,network and multiple service products,jumps onto the integrated logistics service which is dozens of times bigger than traditional freight forwarding,analyzes its diversification strategy from the traditional freight forwarding to integrated logistics service.With the theory relevant to strategic development,this paper analyzes the development history and current situation of logistics,studies the foreign and domestic integrated logistics,uses SWOT methodology based upon the internal and external circumstance that CTS Changzhou Branch is facing,identifies its diversification strategy and describes the execution plan.Through study,it's seen that challenge is more than opportunity from external circumstance standpoint,and its strength is obvious in Changzhou market,the company should therefore take advantage of its own strength to energetically strive for strategic transition in order to obtain long-term power for development.Through the study on CTS Changzhou Branch's diversification strategy,this paper helps the company find the direction and model for its strategic development,captures the leading position in Changzhou's logistics market competition,achieve the development planning setup by the headquarters,establishes a development model for brother companies within the organization.