The Research On The Development Strategy Of G International Logistics Co., Ltd. In China

The rapid growth of China's foreign trade in the background of globalization and the comprehensive openness of China's international freight forwarding industry create a broad market for foreign capital. However, the global economic recession triggered by the subprime mortgage crisis and the over-competition in the China international freight forwarding industry pose grave threats to all China freight forwarding businesses. At this very moment, the study on the development strategy of international freight forwarding enterprises is of great practical significance.The subject of this thesis is a wholly-owned subsidiary of a Lithuanian international freight forwarding company—G company. The purpose of the thesis is to formulate a feasible development strategy for G company by applying systematically the relevant strategy management theories and analytic tools to the study.The Thesis consists of six chapters. First Chapter introduces the background and the significance of the selected topic, puts forth the thread of thought in the research and lays down the framework of the whole paper. Second Chapter carries out further analysis of the external elements that influence the formation of strategy. First, the impacts from the macro-environment in the political, economic, social and cultural and technical aspects are studied by using the PEST model. Then the characteristics and the competitive environment of China's international freight forwarding industry are analyzed by using Five Forces Analysis, Industry Lifecycle and Industry Concentration theories. Finally, the opportunities and challenges G company faces and the critical success factors of the industry are identified on the basis of the external environment analysis. Third Chapter recognizes the strengths and weaknesses G company possesses based on the study of internal environment and resources which is guided by the critical success factors of the industry. Fourth Chapter elaborates on the formation of the best strategy G company should adopt: first introduces the internal and external elements that are concluded in the aforesaid analysis into the SWOT matrix and outputs available strategy options; and then applies the QSPM matrix to assess each option; the final strategy plan is determined after the limitations of the company's resources are considered. Fifth Chapter comes up with the solutions to the issues that may arise during the implementation of the strategy covering the aspects of organizational structure, human resources, marketing mix and corporate culture. And the Balanced Scorecard is suggested to be applied to the control of strategy implementation. Last Chapter summarizes the thesis and arrives at the conclusions.