The Vertical Integration Strategy Research On Qingdao Foreign Ship Supply Co.,Ltd

The international economic growth becomes slow down because the financial crisis has happened in2008. The shipping industry has suffered greater influence from it, because it closely relates to the global economy, quickly fell into the recession from the boom, which has seriously impacted on the ship supply companies business operations, the reason is that the ship supply companies have closely relation to the shipping industry. Meanwhile, the ship supply market states further opening up in October2009, competition intensified, how should Qingdao Foreign Supply Company(QDFS) develop during the special period of our ship supply industry? Which is the purpose of the thesis research.As the ship supply companies often contact with the international vessels and domestic vessels, they will be affected by the domestic and international environment, especially domestic macro-environment, such as political environment and technology environment, etc. This thesis will use the method PEST to analyze this environment of QDFS. Then, use the Porter’s five competitive forces model for the analysis of the industrial environments, finally use the SWOT analysis method for internal situation and competitiveness of the QDFS. Due to the further opening of the ship’s supply market, which causes more enterprises to participate in the competition, result in competition intensified. However, QDFS has still some business problem, such as, management problem, purchasing problem and so on. Therefore, according to its situation&environment, QDFS should make the strategy in order to guide its development. That is, make the vertical integration strategy and execute it so as to improve its competitiveness and profitability. Then, this paper analyzes the vertical integration implementation of QDFS, and suggest that QDFS produces the high value-added production by establishing strategic alliance. If the enterprise supply goods is more professional, more competitive in the market, which meets the customer’s the timely supply demand; Also makes enterprise easier to obtain supply goods and reduces transaction costs, thus improve the market competitiveness of enterprises and profit space.The paper research purpose is to enhance the competitiveness and service level of QDFS, through research and execute the vertical integration strategy of QDFS. Then, they can obtain the steady development. In a certain extent, this thesis expands the application scopes of the vertical integration strategy. It has some theories and practices significance for the steady development of QDFS. For the other ship supply enterprises, it has certain reference significance.At present, the business-related documents on the ship supply are less, this paper only focuses on the vertical integration development strategy and tactics of QDFS. Hope that the research can give some help to QDFS on its operation. Also hope that it has certain reference significance on the other ships supply enterprises management.