Research On The Development Strategy Of S Commodity Trading Company

With the complex and ever-changing global economic situation,combined with the current worldwide epidemic,the international financial market has become more turbulent,the negative impact of global supply chain mismatch has become increasingly prominent,and the volatility of international commodity prices has continued to increase.However,because China has no pricing power for most commodities,the price of China’s futures market fluctuates greatly.How to avoid the risk of violent price fluctuations has become the top priority of Chinese entities.Therefore,on the one hand,the affiliated enterprises of the bulk commodity industry chain need to make stable profits to avoid the company’s large losses;on the other hand,the bulk commodity trading enterprises play a role in providing channels and stabilizing prices.Commodity trading companies are divided into traditional trading companies and futures trading companies.Traditional trading companies mainly make profits by buying and selling at low prices and selling at high prices.Reduce the price volatility of commodities and achieve stable profit returns.In view of the increased volatility and strong speculation in China’s futures market,in order to avoid the risk of violent price fluctuations,many Chinese entities have begun to use the combination of futures and cash for production and trade.However,with the increase in the number of participants in the commodity trade of spot arbitrage,the traditional spot arbitrage model has been unable to fully cover the company’s operating costs,and the birth of spot trade has also accelerated the integration of upstream and downstream industries in a disguised form,compressing the Due to the living space of trading companies,current trading companies such as S bulk commodity trading companies need to develop new strategies to ensure their survival in the market.This article is mainly aimed at S bulk commodity trading company,using strategic management theory to analyze the company’s internal and external environment.On this basis,combined with the current situation of S company’s operation and its own advantages and disadvantages,according to the strategic management process,SWOT analysis,Porter’s five forces model to find a favorable development strategy for the company.Based on the development vision of S company and the analysis results of various models,analyze the development direction for S company and determine the strategic plan.Through the strategic positioning and target planning of S bulk commodity trading company,the author believes that under the existing environment,S bulk commodity trading company should expand its own advantages,and implement differentiation strategy,centralization strategy and vertical integration strategy in turn.And with the establishment of an information management system,the screening of industrial customers and the early warning and risk control of spot futures exposure are realized.At the same time,in the process of strategy implementation,in order to ensure the smooth implementation of the development strategy,corresponding safeguard measures are put forward.I hope this article has certain reference and reference value for similar companies that are also facing the same problem now.