Analysis On The Transformation Of Small And Medium Export Enterprises

As European and American economic uncertainty increased, import and export markets at this stage is facing difficulties and enterprises is confronted with the more difficultie. The original cost of comparative advantage, such as labor, exchange rates, resource prices, etc.which the export-oriented enterprises rely heavily on are becoming less and desalination.Though the economy in2010and2011recovered to grow compared to2008, high raw material prices, labor costs, adverse exchange rate fluctuations and other export factors still show no signs of decreasing. In the context of external pressure and internal squeeze, import and export enterprises are experiencing business transformation pains. In fact, export enterprises has entered a "crucial period", and the transition is successful or not is related to corporate survival.In this context, the author’s business which is an export-oriented company is also experiencing tremendous changes in the last decade.In early2000, the company started the export business of metal hardware,. With the development of the domestic foreign trade situation in china, the company expanded the export business to shoes since2005, but shoes profits gradually reduced as the cost rises. Since the end of2009, the company began to shift export business into domestic market set up Yake Fei Shanghai company, which gradually grow into the main business of the author’s company. Due to the company’s size is small, the company is more quickly adapted to the development and the transition is relatively successful.More export-oriented enterprises are shifting main market from the overseas market to the domestic market and fighting to get more domestic market share.The author took A company as an example and analyzed the internal and external context the export-oriented small and medium trade enterprises faced meanwhile concluded it was necessary and urgent for A company to transform. In addition, it is not appropriate for A company to sell the same products to domestic consumers because there are too many domestic suppliers and the products are of no difference. hardware and footwear market competition is very full, if these products for domestic, is undoubtedly itself into the fierce competition. As the RMB’s Purchasing power is increasing, A company strategically positioned itself as a private company with both import and export business and will make effort to develop import in the future t by means of foreigh products’ high quality, fine workmanship and fashionable characteristics. A company also consolidate the export business and diversify the products.