Case Analysis On CX Company's Paraffin Wax Export Strategy

CX Company was established in October, 1995, a private-owned international trade enterprise with import & export and Border Trade rights approved by the former MOFTEC. As a member of CCCMC, CX company has its subsidiaries in Harbin, Shenyang, Baoding, Guangrao, Ningbo, Wenzhou, Fuzhou, Xiamen, Guangzhou in China and overseas subsidiaries and offices in Australia, South Africa, U.K., Canada, Russia and Hongkong SAR of China. The company's flagship items are: PVC, paraffin wax, citric acid and barley etc. The turnover in 2003 is lOOmillion US dollars. International education exchange is also CX company's business, and a international school has been established. From 1996, CX company started paraffin wax exporting business, to North America, Asia Pacific, Africa and Europe etc. They've got great achievements and at the same time there are also some problems on exporting strategy.Based on investigation and research, this case study summed up the past few ten years experiences and lessons, and studied the situation, competition, challenge and opportunities. It has pointed out the advantage in competition: future, policy, resource and funds as well as the disadvantage: lacking of integrity and cooperation within the internal structure and also lacking of integrity management in the wax exporting. At the same time some other problems: the market price volatile with great extent, exporting with the risk of fluctuation, not fully utilizing present resources, the exporting relying on the middlemen, the company lacking of final end user, not having the ideal relationship with manufacturers, not sufficiently mobilizing subsidiaries' activities, and un-ideal competition phenomena existing in the internal management. Based on above mentioned, there are two strategy aims: increasing the occupation rate in the international market, and increasing the profit. There are some strategies conformation and strategy measures mentioned in the context. Recommended: to establish high efficiency system; especially making the management and the sales in good relationship; planning the export channel, and establishing its own direct promotion system, debating the middlemen; exchanging the price mechanism; establishing the strategy federation of the wax export, increasing the competitive power in wax exporting. I hope that the strategy and measures could be implemented smoothly and with realistic meaning.