China Shipping Development Strategy

China Shipping Tanker Company (abbreviated as CS Tanker) is a specialized shipping enterprise affiliated to China Shipping Development Co., Ltd and the biggest tanker carriers in China. Thanks to the support of government policies, CS Tanker has the biggest market share in the internally traded crude oil shipping market ever since her establishment is 1998. During the following years, CS Tanker kept a good business performance with rapid extension of scale and achievement. contributing a lot to the development of national economy and petroleum industries. The economic globalization and persistent growth of the global economy accelerate the development of world trade integration and shipping integration. That provides a great opportunity to CS Tanker. Meanwhile, CS Tanker has to face the threat of substitute of pipeline transportation for domestic oil shipping . Therefore, a long-term development strategy based on competitive advantage will play an important and realistic role to the survival and development of CS Tanker.This thesis will analyze the development strategy issues about CSTanker with the theory of Porter's five-forces framework , Competitive Environment Analysis and Competitive Strategy. Firstly, it introduces the general competitive condition of tanker industry. Then, on one hand it analyze the external environment of CSTanker, pointing out that CS Tanker will not only enjoys the developing opportunity owning to dramatic increase of imported crude oil and domestic ocean oil transportation market, but also faces the impact of construction of coastal oil pipelines. The opportunity and challenge are coexistent. On the other hand, the dissertation investigates the internal condition of CS Tanker in the fields of business management ability, marketing ability, and human resource by comparing CS Tanker with the domestic and foreign competitors. The analysis indicates that CS Tanker has advantages in business management, profit ability and finance capability and disadvantages in fleet structure, mechanism, human resource, international operation experience and so on. On this basis, through the SWOT analysis the thesis makes it clear that the long-term strategy target of CS Tanker is to establish a world-class tanker fleet with rational structure and advanced technology, which is competitive in international market, domestic market, ocean routes and coastal routes. It also points out the Cost Leadership strategy should be the competitive strategy for CS Tanker. Meanwhile, according to the actual situation of CS Tanker, it brings forward some suggestions. Firstly, the company should improve its cooperation with domestic petrochemical companies and other tanker companies and try to achieve a strategy alliance with them. Secondly, the company should construct an international marketing network by overseas branches. Furthermore, the company should strengthen the relationship with maritime universities and finance institutes and cultivate talent for ship-shore management. Finally, the company should push ship safety management and establish risk management policy. The writer is confident that if the mentioned suggestions could be adopted reasonably, it will help the company to found core competence and make transition from national-class tanker company to world- class tanker company.