Study On The Strategic Development For Tieli International Logistics Company

With the further development of the economic globalization,the international economy and trading circumstances had been continually improved.The foreign trading development also booms up international logistics development in China,promotes the medium-small logistics enterprises growth at the same time.In the Y2013,Chairman Xi Jinping proposed “the Belt and the Road”.“The Belt and the Road” strategy outlines the blueprint of the grand corridors from Middle-Asian to Indian Ocean and Persian Gulf,and the corridor of transportation economy from Baltic Sea to Pacific Ocean;connects the economic corridor of North-South via China,India,Bangladesh and Myanmar,China-Pakistan Economic Corridor,and traverses the Europe and Asia continents.This strategy mainly focuses on promoting the flow of production factors,on the effective allocation of resources and on deepening the market integration.Logistics is the one of the key supports to “the Belt and the Road” – the national strategy implementation.The railway transportation is playing more important roles in the international logistics industry.Especially,the railway transportation is irreplaceable in the Europe-Asia wide range continents transportation.In the Euro-Asian economic and trading co-operations,the railway transportation is carrying out its new missions.“The Belt and the Road” strategy provides the favorable opportunities for the logistics companies in railway transportation;as well as more challenges to those international logistics companies.How to seize the developing opportunities,adjust the strategy of development,improve the competitiveness and the performance of the business are the issues to be seriously considered by Tieli International Logistics Company.Scientific business strategy is the key for the enterprises to success.This paper starts from the current strategy of Tieli International Logistics Company(short as TILC below)and diagnoses the development situation and the existing problems of TILC.This study extends the research to the aspects of foreign and domestic economic environment,political and legal environment,social cultural and technical environments,to analyze the macro environment TILC situates;The paper also analyzes that this company's competitiveness in international railway transportation field and that,this company's opportunities and threats existing in the macro environment and that,by the dimensions of the Bargaining Power of Suppliers,Bargaining Power of Buyers,Substitutes,Threat of New Entrants and Competitive Rivalry.With the analysis on human resource,company profitability and the core competence of the business,this paper indicates the advantages and disadvantages of this company and provides the effective basis for the company's strategy target and strategy selection.This paper study suggests that,TILC should make good use of “the Belt and the Road” national strategy,seize the new opportunities generated by this strategy in railway transportation,as well as the strong support of the national strategy to logistics industry,exploit the company's own advantages and the railway function in the multi-modal transportation.This paper study suggests selecting the SO strategy and the ST strategy,to focus on Sino-Euro railway transportation and make the differentiation strategy – differentiation in services areas,in target customers and market demands variety.This company should provide the professional railway services to the traders between China and Europe with the upgraded and quality servicing system.Under the strategic cooperation with European,CIS railway entities,TILC should also strengthen the strategic cooperation with domestic railway service platforms,so to implement and improve its own differentiation strategy – TILC should adjust the strategy simultaneously from strategy setting-up,planning,executing and re-adjusting perspective.With strengthening HR management,brand construction and management,perfecting the organization institution and promoting the corporate culture,the development strategy of TILC could be implemented.