C Corporation Cross-Border Business Model Study

With the emergence of overseas online shopping, the cross-border E-commerce gradually comes into the public’s view in recent years. And the amazing development of China’s cross-border E-commerce has drawn the world’s great attention as well. The cross-border E-commerce has dragged the blue sea market into the one of the red sea and then makes the former one compete cruelly and fiercely with the latter one. Meanwhile, cross-border E-commerce itself is competing fiercely and bloodily with B2C. Among the great many E-commerce companies, special attention has been given to C Company, a state-owned enterprise which is transforming itself from being an enterprise specializing in the traditional international trade to be the one dealing with cross-border E-commerce. However, a big gap is found between E-commerce mode of C Company and the one of modern E-commerce. C Company, whose core mode is B2B, mainly aims at the segment market of architecture materials. Therefore great differences are available between its products and those of the current E-commerce companies whose majority of the products are fast moving consumer goods and 3C products. In addition, there are great differences as well in their means of transportation. C Company mainly relies on big containers while the current E-commerce mainly depends on Express. In this article, the author tries to provide some useful information borrowed and learnt from the transforming process of C Company to enterprises which are transforming from the traditional ones to cross-border E-commerce ones.First of all, the operation and profit models of the dominant domestic cross-border E-commerce are briefly introduced. Also, the characteristics and advantages of each cross-border E-commerce are analyzed so as to show the complementary advantages between cross-border E-commerce and the traditional trade. Meanwhile, the possibility of increasing cross-border E-commerce’ product variety is analyzed as well so as to help readers gain a preliminary understanding about the current cross-border E-commerce.Then an introduction about the background, transforming thinking, operation characteristics as well as management plans of supply chains of C Company is given. And among the above-mentioned contents, the major part is about the introduction about the foreign trade data, the thinking and plans about how to realize the all-field electronic information during the transform of C Company. Meanwhile, the process of supply chains’ transformation from mode of the traditional foreign trade to the one of the new E-commerce of C Company is available in the major part as well. Moreover, a main analysis of the establishment of overseas warehouses, logistic node management, development and use of logistic plans and situation about the bidding platform of sea freights is given, through which, the business model of C Company and vitality of mixed-ownership enterprises are gradually presented. In the end, we can see directly from contents of the article that differences are available between C Company and the current cross-border E-commerce and traditional trading companies. At the same time, these differences can further enable C companies to learn and borrow experiences from the latter ones.