Research On The Development Strategy Of R Trading Company

R Trading Company is a start-up company mainly engaged in the export of carbon products.The carbon industry is an important raw material industry in the country.Carbon products have high temperature resistance,good electrical conductivity,corrosion resistance and thermal shock resistance.Some specialized graphite,recrystallized graphite and pyrolytic graphite have very high temperature.Good stability and good strength to weight ratio.Graphite also has good neutron deceleration performance and was first used as a retarding material in atomic reactors.Therefore,in addition to meeting the needs of the metallurgical and chemical industries,carbon materials are also used to manufacture nozzles for solid fuel rockets,nose cones for missiles,and parts for space navigation equipment,providing raw materials for the aerospace,nuclear industry,electronics,and machinery industries.As a growing company,it has achieved impressive results in the early stage of its business.The annual turnover has grown from 1.6 million in 2016 to more than 90 million in the first half of 2019.The performance in the four-year period has increased several times.Part of the impressive results is due to the company's effective network promotion and local promotion strategy,and the other part is due to the company's founders in the process of operating the selection of precision,catching up with the carbon industry market recovery dividend.Since the financial crisis in 2008,the carbon industry has suffered from overcapacity,homogenization competition,and low-level redundant construction due to the shrinking of domestic and international economies and the downturn of electric furnace steel.In 2012-2016,graphite electrode manufacturers suffered a total loss,and many companies closed down.This phenomenon reversed in2017.From the perspective of international demand,the recovery of the international economy and the rise of emerging countries such as the Commonwealth of Independent States have stimulated the demand of the international market;from the perspective of domestic demand,the supply-side structural reform has enabled the state to thoroughly clean up and rectify the strip steel and medium frequency furnace.As a result,steel mills' demand for electric arc furnace steelmaking has increased rapidly,which has driven the demand for graphite electrodes.From the supply level,it is difficult for enterprises to resume production,and the scale and intensity of national environmental protection inspectors have been upgraded.Many in Henan,Hebei,Gansu and other places.Production enterprises are restricted in production and the annual output is insufficient.The large capacity gap has caused the market to be in short supply.In terms of export volume,the price and price have risen,and even the situation of customers bringing cashto the door has appeared.R Trading Company discovered this market and seized the opportunity.However,as the market picks up,more capital is injected into production companies and traders,production capacity is continuously released,and the competition in the seller's market is more intense.It is estimated that the annual production capacity of graphite electrodes in China will reach 1.5 million tons in 2020,which will seriously exceed the annual demand of less than 800,000 tons.At present,the electrode price has fallen by more than 60% since it peaked in the first quarter of 2018.In the next decade,the price bubble will gradually disappear.The decline in prices and profits,and the increasing competition in the market will inevitably make the development of the company more difficult.How to identify the development direction,enhance its core competitiveness,and remain invincible in the market competition,so as to maintain the company's high quality and sustainable development,has become a problem that R trading companies must face.At the same time,with the deepening of China's reform and opening up and the in-depth promotion of the “Belt and Road”,the market of central international trade has gradually been opened,the spillover of reform and opening up results and the support of national policies have brought history to R trading companies.opportunity.To catch up with the national policy and the international market,business leaders must develop strategic plans to promote business development.Based on the above reasons,this paper chooses the development strategy of the trading company as the research object.This paper uses the case study method and the literature research method to study the development strategy of R trading company.In the course of the research,R company annual report and various announcements,archive documents,interview documents and so on were collected.Then use PEST,SWOT,five-force analysis model and three competitive strategy theory to analyze the data.Focus on the current development status and existing deficiencies of R Trading Company,as well as the factors affecting the development of the company's internal and external factors,and propose solutions for the selection and implementation of R trading company development strategy.Through research,the following research conclusions are drawn:First,PEST analysis shows that the “Belt and Road” and the rise of emerging economies and the advantages of China's industrial system have brought significant opportunities for the development of R.However,the United States has imposed resistance and potential threats to sanctions in some areas and Sino-US trade wars,challenging R's ability to cope.Secondly,using the Porter Five Forces model to analyze the industry competition situation,the R company has the ability to compete in the industry.Third,through SWOT analysis,it is concluded that the comprehensive advantage of R company is greater than the disadvantage.Fourth,using the theory of the three major competitive strategies,it is concluded that R company is suitable for the path of integrated development.The conclusions of this paper can provide theoretical support for the direction and measures of R company's development strategy,and can also provide reference for the formulation of other trading company strategies.