The Research Of Development Strategy Of Shunfeng Group Co., LTD

Since the implementation of the reform and opening-up policy, China’s economyhas been growing faster than ever, and the booming economy in the nineties of20thcentury gave rise to the logistics and express service industry. For twenty years ofrapid development, express industry witnessed many private small businesses growinginto well-established ones. However, competition between local companies andchallenges from foreign businesses, such as UPS, DHL, FedEx, and TNT, areconstantly intensified since the life cycle of logistics and express service industrykeeps changing. SF Express, a leading one of all the domestic private log istics andexpress delivery service providers which has been engaged in this business for20years, is also confronted with the greatest challenges it has ever faced, and how tosurvive and thrive in this competition is SF’s top priority. Strategic managementtheory and methods like PEST and SWOT are used in the paper for the research onSF’s development strategies.By using the PEST method, the author analyzes the economic environment of theindustry from a broader strategic perspective, and discusses the inner situation of SFExpress, such as internal environmental factors, and the internal resources andcapabilities. With the analysis of both external and internal factors, SF’s opportunitiesand threats, and strengths and weakness are well presented. The author also appliesSWOT to the analysis of SF’s S (Strength), W (Weakness), O (Opportunity), and T(Threat), and finally comes to the conclusion that Development is the correctstrategy that SF should choose which includes corporate-level strategy, business-levelstrategy, and functional-level strategy. By using corporate-level strategy, whichincludes intensive growth strategy, integration strategy, diversification strategy, andinternational business strategy, etc., as well as the corporate-level strategy, whichconsists of differentiation strategy, overall cost leadership strategy, and focus strategy,the author find out the correct development direction for SF and work out themid-and-long term development goals of SF based on the overall developmentdirection and strategy. The steps and the focal points of the strategy implementationare also elaborated in this paper. The author also discusses the adjustment oforganizational structure, the decomposition of strategic goals, the implementation ofaction plans, the resource allocation for the implementation, and the management of the implementation, and provides the solutions to the problems and difficulties thatmay put a brake on the implementation of SF’s strategies in this paper.Furthermore, this paper provides some suggestions on the current competitivepattern among domestic express delivery business market and the medium-long termdevelopment direction.