| Deep impact of the international financial crisis triggered by the US sub-prime crisis continues to expand,which leads to the complex trading environment.Many countries and regions have adopted various trade protection measures to restrict imports in order to strengthen the protection of domestic industries and market,particularly for Euramerican countries.They take more and more anti-dumping,anti subsidy investigations and set up kinds of trade barriers countering Chinese enterprises which are based on low cost expansion strategy.Euramerican countries’ high unemployment suppress the income growth,depress consumption ability and willingness and the individual consumption level is difficult to rapidly improve in the short term.At the same time,the increase in domestic factor costs and the RMB appreciation further reduce the profit margins of export.Taking YKHB company for an example,it is a processing trade enterprise relied on foreign orders,its procurement of raw materials and product sales mainly controlled by several foreign customers.The market is relatively single.Facing the difficulties of downturn in external demand,rising costs,increasing friction,its developing prospect is not optimistic.YKHB company is mainly engaged in recycling of renewable PS plastics and regeneration business,and its renewable plastics are used in the field of environmental protection frame and other decorative materials.As the growing awareness of forest resources and environmental protection,wood products combined the advantages of wood and plastic became one of the replacement materials for the traditional wooden products,and are widely used in the field of Home Furnishing decoration and indoor and outdoor building materials.They have been more and more recognized by consumers and be loved by the market.YKHB company imports waste plastics and exports wooden photo frame products by the way of processing trade.It has formed a clear cost advantage in the marketing competition,especially in North America.However,affected by the financial crisis,YKHB company is facing the growing risk of political environment,trade barriers,exchange rate.It needs to use the existing production technology,management resources,sales channels and brand advantages,through the research of the strategy,to strengthen and expand market home and abroad and to eliminate the huge risk caused by the single market.Strategic management can help the enterprises reduce industry risks,improve the core competition and enhance the comprehensive competitive advantages on the basis of existing management resources.Diversification strategy of market is the combination of old products and new strategies,referring to the enterprise to open new market for the products,in other words,develop new customers in markets,including the domestic market,international market,and even the global market.Market diversification strategy can help enterprises get rid of financial crisis effectively by mitigating the negative effects of trade protectionism and regional collectivization as well as avoiding the over reliance on.single market.Focusing on the strategic objective of the company,the adaptive market diversification strategy of YKHB can be designed on the basis of internal and external environment analysis and the advantages and disadvantages analysis of existing market by using SWOT.This paper tries to summarize the diversification strategies of market on the basis of comprehensive analysis of internal and external environment of the company,and the researches by adopting relevant theories and management tools.Furthermore,this paper also studies the implementation and guarantee measures of this strategy deeply providing some reference ideas for the long-term development of China’s processing trade enterprises. |
