Research Of Business Strategy Of Refrigerated And Insulated Vehicle Of ZJ Group

Chinese market for refrigerated and insulated vehicle is predicted to have big potentialdue to the encouraging policies and industry outlook. However, development of Chinesemarket for refrigerated and insulated vehicle was uneven during the past several years: thesmall and medium vehicle market was developing quite steadily, while the demand for trailerhas not been released yet. The entry barriers of this industry is quite low in China. Most of themanufacturers are small-size companies. Some of them could not break even. Productsprovided are homogeneous. And the average profit margin is quite low.ZJ Group is the leading manufacturer of logistics equipment in China. Its productsinclude containers, special vehicles, tank transportation equipment and airport equipment. Ithas rich experience in manufacturing, marketing and the globalization. Since ZJ group startedits refrigerated and insulated vehicle business in2003, it is now the top1player in Chinesemarket. It intends to seize the opportunity and expand its market share in domestic market.And meanwhile it also tried to enter the developed markets.Refrigerated and insulated vehicle business of ZJ Group is studied in this article. Byusing PEST analysis and Porter’s Five Force Model, this article analyzes the external andinternal environment. And a SWOT analysis is conducted based on the external opportunitiesand threats, as well as the internal strengths and weaknesses identified. This article thenprovides the strategic intention, objective, positioning and3-year goals accordingly. And theimplementation plans are also provided.This article suggests that in order to expand its market share and become the top supplierin domestic market, ZJ Group shall optimize the organization structure of the target business,offer incentives for the core team members, and adopt differentiated product and servicestrategies, such as buyback service for used products and financial leasing service. And for theU.S. market, ZJ Group shall ensure its cost advantage for the unique CKD business model andachieve profits.