A Study On Development Strategy Of HF Trade Company

With China's Entry into WTO on Dec 11, 2001, international trade in China has entered a new era. Since international import and export is no longer a monopolistic business, more and more medium and small enterprises entered this field and became the main force of China's international trade business. Medium and small business is indispensable in any economic system and constitutes a good compliment to large enterprises. For medium and small companies, size doesn't matter, economic activities and its energy does.Most of China's medium and small international trade companies focus on export business, mainly because the threshold for import business is relatively higher. Medium and small business bears many restrains, namely small size, weak competitiveness, insufficient funding, which put them in a disadvantageous position in global market competition. Since 2006, China's policy favors more about import sector, while export sector experienced increasing headwind including stronger RMB, rising raw material prices and lower export tax rebate. We hereby try to analyze from the operational and marketing point of view, how medium and small international trade businesses can establish themselves among global competition.We are going to look at a sample company, HF Company, a small export business in Xiamen. HF Company is used to be a subsidiary of a large state owned enterprise, with its core business in export sector. Since 2004, HF became an independent private enterprise and experienced fast growth. However, key employee of the company have left and brought with them many businesses, contributing to the declining revenue and profit of HF Company. Author studied and analyzed HF Company's current situation and try to identify strategic solution for HF Company.