Strategy Analysis On ABC Global Logistics Company’s Penetration Into Guangzhou Market

Like many foreign and multi-national enterprises, ABC International Logistics Companyhas set up its China joint venture back in1993when China starts its open-door economypolicy. ABC Guangzhou branch has been set up in the following year of1994and grown as avery strong and steady business in local market.However, as the slow economy globally, together with the increasing labor cost andRMB appreciation in China, the demand for international transportation, export from Chinaespecially, has been declining. However, on the other hand, a lot multi-national logisticsgiants had entered in China market already and there’re also many local logistics players, theindustry thereafter in China has become all-time transactional and in fierce competition withvery slim margin for multinational players like ABC logistics company.In this situation, ABC Company’s strategy in Guangzhou market needs to be re-evaluated, adjusted and upgraded, the company needs to figure out a practical strategy to playits best advantages and embrace the future of local market, meanwhile, to minimize itsshortcomings and prepare for the possible and hidden challenges and find its future road to gofurther in Guangzhou market.Aiming for sustainable survival and development, its crucial for ABC company to workout a deep strategy analysis and plan, extending and upgrading from its international freightbusiness to be a professional logistics&supply china provider, begin to search for newmarket share and build up its domestics distribution network and delivery capability inresponse the ever-growing China domestics demand and providing extended and door to doorservice to its global clients. This is the key purpose for this thesis.