Research On The Development Strategy Of Feiyang International Trade Company

Since the reform and opening up,China’s economy has developed rapidly,among which the vigorous development of labor-intensive industries has earned China the reputation of “the factory of the world”.Benefit from this,China’s foreign trade industry has achieved a “dividend period” of nearly 30 years of development.However,starting from the financial crisis in 2009,the economies of western developed countries began to decline,and China’s foreign trade industry began to face various challenges.The retail industry in foreign countries was sluggish,the profits of major retailers declined,business difficulties appeared,and the number of orders and the frequency of purchases decreased significantly.Purchasing prices are getting lower and lower.At the same time,China’s labor costs and raw material costs are rising,and the exchange rate USD to RMB has fallen sharply.Foreign trade companies face the triple pressure of increasing costs,decreasing product demand,and constantly lowering purchase prices by customers.The profits of companies are constantly being forced to reduce,and the foreign trade "dividend period" is gradually becoming a thing of the past.The 2018 "Sino-US Trade War" officially started,giving many foreign trade companies whose main source of customers is the U.S.market a head-on blow.Many companies are instantly in trouble.Even some large-scale foreign trade companies are not spared,even some companies are facing bankruptcy.Feiyang Foreign Trade Co.,Ltd.is a traditional foreign trade company,located in Guangzhou,Guangdong’s "Pearl River Delta" area,where the foreign trade export industry is developed very well.It is mainly engaged in the export of handbags.It is an "industry and trade integrated" company integrating design,development,and manufacturing.Feiyang’s foreign trade has achieved stable development for more than two decades during the "dividend period" in China.Nowadays,due to the impact of the U.S.economic recession,the "China-US trade war" and the "COVID-19" epidemic,its business has declined severely.The company has over-relied on U.S.market for many years,which has led to the massive loss of customers,and at the same time,the development of other markets is almost blank,the company’s development is seriously trapped.How to plan the future development direction,formulate a reasonable development strategy,accelerate business expansion,and increase corporate profitability is what Feiyang needs to solve urgently.The research in this article is based on the current international market background,especially under the influence of the "China-US trade war" and the "COVID-19" epidemic,with Feiyang as the research object.Through the collection of a large amount of internal data of the company,a comprehensive introduction and analysis of the company’s development history,company structure,customer types,revenue,etc.,combined with the theory of strategic management,using strategic management tools and methods to conduct the analysis on internal and external environment of the company.The PEST environmental analysis method is used to analyze the macro environment of the company;the "Porter Five Forces Model" is used to analyze the industry environment of the company;the internal environment of the company is analyzed from the four aspects of human resources,financial resources,technical resources and business reputation.Using the SWOT matrix to analyze and summarize the internal advantages and disadvantages,opportunities and threats the company is facing,and draw corresponding conclusions.In terms of strategic choices,the four strategies are analyzed and compared to finally determine the most suitable SO development strategy for Feiyang.Based on the current foreign trade market situation and the company’s own conditions,a strategic goal suitable for the development of Feiyang foreign trade company has been formulated,combined with the impact of the current "COVID-19" epidemic and the company’s single customer market and single business model,planned and formulated the short-term,medium-term and long-term goals of development.Finally,put forward the implementation plan and safeguard measures for each strategic goal,hoping to help Feiyang Foreign Trade Company to get rid of the current business difficulties and achieve sustainable development in the future,also hope to give some reference to other companies in the same industry.