Research On Development Strategy Of Shanghai TY Leasing Company (Limited)

Although the leasing industry has a long history in China, Chinese modern leasing appeared in the early 1980s, which had only over twenty years'development so far. During this period, Chinese leasing industry experienced the rapid growth, and also had the difficult time for its development. And when the time moved into the 21st century, Chinese leasing industry entered a new stage of development. The macroeconomic environment, policy environment and market requirements in Chinese leasing market provided more opportunities for the leasing companies'development.Shanghai TY leasing company was founded in such a new historical period, and it got quick development during the bypast six years. TY Company was registered in Pudong new district of Shanghai City; it is a professional leasing company whose business is focused on the heavy trucks'leasing. It ranked the NO.2 in the Chinese heavy trucks leasing market in 2006 and got the relatively high market shares. But with the continuous enlarging of its scope, the company's management didn't get enough development, at the same time its management costs were increasing continuously, so its profitability was decreasing accordingly. What should the TY Company do facing such situation? How can the company keep its market advantage, and then improve its profitability on this basis? And it is also the biggest problem for the company now. All these need the TY Company to redesign its development strategy which is fit for its current situation.According to our analysis to the leasing industry, we know that the leasing industry's key successful factors are the financing capability, the capability of getting client resources and risk-control capability. After interviewing with its employees and investigating the company, and then analyze its current core capabilities, we find that the company's current core advantage is the strong capability of risk-control, and its other core capabilities still need to be improved. So on the basis of the analysis to the TY Company's internal and external situations and then using SWOT strategic matrix to do the detailed analysis, we think that TY Company should choose the development strategy path of integrating the leasing, sales and value-added services. By this way, the company can integrate its industrial value chains, improve its holistic competitive capability and its profitability. Moreover, TY Company should do the priority ranking according to two latitudes of importance and urgency, and then confirm that in the future development, the leasing business is its principal part and main profit source, the value-added services and the sales business will provide the client channels, capital sources and service supports.According to the company's new development strategy, at the end of the dissertation I bring forward its future core capabilities construction plan, do the analysis to its cultivating approaches, and then design the detailed layouts for its core capability construction according to three phases.