Z Guangdong Corporation’s Business Strategy Research In Third-party Inspection & Testing Service

Z Group is a large state-owned enterprises which focus on inspection and certification field. Its predecessor was China Import and Export Commodities Inspection Corporation, and after several corporate restructuring and mergers, then make successful completion of a modern enterprise in 2006 and officially changed its name from the restructuring. Long time ago Z group signed a long-term commission contract with UL(Underwriters Laboratories) for inspection agency for its certification factory customers, which brought a steady stream of business for the Z group. Z Group Guangdong Co. Ltd is mainly responsible for the UL follow up inspection in Guangdong Province(excluding Shenzhen). Thanks to long time development export business in Guangdong, Z company has been ranked in the top of the Group’s business areas. However, due to key customers-UL has made a localized operations and expansion in China, to become familiar with the Chinese market environment, and then make cost down in the agency price. Affected by the recent global economic stagnation, and the industry restruction policy, the total number of certified factory in the province began decreased, and the growth rate of revenue slow down and even decreased. Z company inspection business has to face a very high pressure. In this increasingly complex and competitive environment, Z company need make a huge change for the company’s business strategy and search for new developing opportunity. According to their resources and capabilities, combined with the characteristics of Guangdong’s export commodities, and maintain within the field of integration of third-party inspection company’s existing resources, build competitive advantage, gain market share, and seek new business growth.Firstly, use ”PEST” and Porter’s "Five Forces" to analysis the external environment and the target market, and identified the opportunities and threats. Then make a deep analysis the field competation situation and key success factor in the third-party field. Then use SWOT matrix analysis in the third-party inspection business for Z Guangdong company. Base on the market segmentation and competitor analysis and confirm the cost leading business strategy. Then make a value chain design to make sure what steps can be used to make cost down. Finally, the design of the phased implementation of the strategy plan, and adjust the organization, human resource measures, information management, logistics management, marketing strategies and other aspects.