To View The Profitability Of Listed Private Express Delivery Companies From The Perspective Of Differentiation Strategy

BACKGROUND AND SIGNIFICANCE With the rapid rise of network technology,it has stimulated the rapid development of China’s express delivery industry in recent years,especially the private express delivery enterprises with a large market share and dominant position in the domestic express delivery industry.With the express delivery of Yuantong Express,Shentong Express,Yunda,SF,and Zhongtong Express,the Baishi Group and Debon Logistics have successively listed,and the competitive situation in China’s express market overwhelmingly changed.The fight between private express delivery companies has gradually evolved into competition in the capital market.The competition for homogenization of products and services has become more and more fierce.The comprehensive strength of the brand image,product service,coverage,efficiency and operational process of the express delivery industry directly determines the profitability of private express delivery companies.All private express delivery listed companies must survive in the homogenization competition which has heated up and have to formulate financial strategies.The strategy of differentiation is an essential tool for companies which long for continuously improving their own strength and improving their profitability.In recent years,domestic enterprises are very concerned about the strategy of differentiation.However,most of the researches on the performance of domestic differentiation strategy in the academic circles are empirical research on data testing which means the case studies based on domestic management practices are still of shortage.Nowadays,China’s express delivery industry is highly concentrated.The competition strategy of listed private express delivery companies affects the development of express delivery industry and even logistics industry.It is important that private express delivery companies which have just listed how to improve their core differentiated competitiveness,and then steadily improve their profitability.This paper analyzes the profitability of listed private express delivery companies,SF Holdings as an example,based on the perspective of differentiation strategy.MAIN CONTEXT The main content of this paper includes five parts:The first chapter is an introduction.This paper mainly elaborates four aspects.First aspect is the research background and the significance of the research,the second is the importance of the differentiation strategy to the profitability of the private express delivery company,and the third is the ideas and content of this paper,and the final is the main contributions and insufficiency of this paper.The second chapter is a literature review.This chapter is divided into four sections.The first section reviews and comments on the development,connotation,significance and research results of the differentiation strategy.The second section reviews the enterprise profitability evaluation.The third section summarizes the differentiation strategy to the enterprise profitability.The impact of this chapter is summarized in the fourth section,and then the direction of this paper is proposed.The third chapter is the theoretical analysis part on differentiation strategy and enterprise profitability.The first section defines the relevant concepts,the second section is the relevant theory of the differentiation strategy,the third section is the research tool of the competition strategy,and the fourth section is to select the profitability evaluation index of the private listed express delivery company.First from the management level to analyze the evaluation of profit,and then select profitable index--sales gross margin,net sales margin,return on net assets,return on total assets,and net profit cash flow ratio.The fourth chapter is the analysis of the development status of China’s private express delivery industry which is the macro environment and the current internal conditions of the express delivery industry,and finally summarizes the comprehensive environment of the express delivery industry.The fifth chapter is the case study part which is the core part of this article.The first section gives a brief introduction to SF Holdings.The second section analyzes the strategic choices of SF’s comprehensive strength through the Porter Five Forces model.The third section explains the differentiation strategy adopted by SF Holdings.The fourth section is about SF.The company’s profitability analysis,the final section summarizes the evaluation results.The sixth chapter is the conclusion and outlook of this paper.The conclusion is that the differentiation strategy has a certain role in promoting profitability.Combined with the analysis of case companies,we can improve the core from product,management,brand and technical service differentiation.However there is still the risk of implementing differentiation strategy.Therefore,it is necessary to adjust the strategy according to the market environment.Finally,based on the analysis of the research process and the limitations of the research methods,the future research is proposed.MAIN CONTRIBUTIONS The main contribution of this paper has certain practical significance of maintaining the sustainable competitive advantage and profitability for the private express delivery enterprises and enriches the case material of strategic selection and performance analysis of China’s private listed express delivery enterprises.