Research On Transformation Strategy Of PENAVICO(Tianjin)'s Shipping Agency Business

Tianjin Ocean Shipping Company(hereinafter referred to as PENAVICO(Tianjin))was established by China Foreign Shipping Agency Corporation and Tianjin Port Group in 1953.After the initial monopoly operation and the market operation after the opening of the shipping agency market,PENAVICO(Tianjin)has the highest market share and strong competitiveness in the shipping agency market in Tianjin Port,especially in the liner agency business.In 2017,PENAVICO(Tianjin)has acted as agent for 1,662 ships and 3.82 million TEUs of containers,exceeded the sum of the second Tianjin shipping agency and the third Zhenhua shipping agency,accounting for 25%of the container throughput of Tianjin port.However,with the gradual liberalization of the shipping agency market,especially the limit of foreign investment shares in shipping agency industry was canceled in 2018,an increasing enterprise type enter the Tianjin port's shipping agency market,PENAVICO(Tianjin)faced an increasingly fierce market competition,and the higher profit margin of the original shipping agency industry has been gradually squeezed.In addition,PENAVICO(Tianjin)has formed some problems during a longterm development,such as over-reliance on the core business of liner agency,business volume depends on the throughput of Tianjin Port,weak growth of revenue and profits,PENAVICO(Tianjin)is facing a severe production and operation environment.In this context,it is necessary for PENAVICO(Tianjin)to make full use of its existing resources such as capital,brand image,customer and so on,and transform its core business in order to adapt to the changes of internal and external environment and maintain its core competitive advantage in the fierce market competition.This paper focuses on the transformation strategy of PENAVICO(Tianjin)under the background of changing internal and external environment,this study has certain theoretical significance and practical value,aiming to provide reference suggestions for the actual transformation of the core business of PENAVICO(Tianjin)and other similar ship agency enterprises.Firstly,the significance and background of this study was introduced,the domestic and foreign research literatures related to this paper were summarized,futher the research ideas and contents of this paper were pointed out;secondly,the theoretical basis of the transformation of PENAVICO(Tianjin)was analysed,including basic concepts and theoretical basis;thirdly,the internal environments including company profile,current operation situation and existing problems and outer environments including the policy environment,economic environment,market environment and technology environment of the transformation of PENAVICO(Tianjin)'s shipping agency business were analysed with the method of PEST,then the transformation necessity of PENAVICO(Tianjin)'s shipping agency business were pointed out,thus to lay a foundation for the formulation of its transformation strategy.Fourthly,the key direction of the transformation strategy of the transformation of PENAVICO(Tianjin)'s shipping agency business on the basis of pointing out the ideas,positioning,objective and the transformation strategy was put forward including transforming from the traditional business to actively expand new business,transforming from customer needs driven to to mining the customer demand,transforming from mainly running offline mode into OAO mode,transforming from the traditional ship agency to the entire logistics service providers,transforming from providing logistics service to provide supply chain financial service,Finally in order to ensure the smooth implementation of the transformation strategy,the safeguard measures for the implementation of the the transformation of PENAVICO(Tianjin)'s shipping agency business were put forward.This paper has certain theoretical significance and practical value,which can provide reference for the formulation of the transformation strategy of PENAVICO(Tianjin)'s shipping agency business.