A Study On The Competitive Strategy Of P Company

It is well known medium-and-small foreign trading companies have played a very important role in promoting China foreign trade development.As far as Xiamen stone-product trading is concerned,there are nearly 500 professional medium-and-small foreign trading companies engaged in stone-product trading, which leads to severe market competition.During recent years,competition becomes much fiercer,resulted from new Tax-refund policy,new Labor Law,Appreciation of Chinese currency,increasing raw material cost,stronger customer bargaining capacity and etc on.All these factors greatly restrict and affect survival and development of all medium-and-small foreign trading companies.Taking P company as a case study,this article applies " 5- forces model" theory to analyze industry structure and competition condition of stone-product foreign trading.It also applies "Value-chain" theory and "SWOT analysis" method to summarize main problems occurred in daily business operation and his advantages and disadvantages.Based on above analysis,combining with competitive strategy theory and supply-chain management theory,this article comes to a conclusion that P company should adopt "overall cost leadership" strategy.It also provides three implemental measures,namely "becoming supply-chain manager","developing foreign trade agency" and "financial control on procurement channels and cash flow". Under this way,P company can lower down his cost,promote profit margin and strengthen competitiveness capacity as well.