Research On The Development Strategy Of Guangzhou SG Foreign Trade Company

As one of the "troika" that drives the domestic economy--Foreign trade has always played an essential role.Especially after China joined the WTO in 2001,The volume of foreign trade grew rapidly.According to statistics from China Customs,China's total import and export volume in 2018 was about 4.62 trillion US dollars,ranking first in the world,accounting for about 10% of the world's total.It's the world's largest exporter and second largest importer.China's economic development benefits economic globalization.At the same time,it is also taking back the development of the world economy with its own practical actions.China actively advocates the liberalization and facilitation of trade and investment.Since Year 2013,President of P.R.C-Mr.Xi's announced the policy of The "One Belt,One Road" initiative,which is aimed at deepening the economic and trade cooperation between countries along the line,upholding the idea of mutual benefit and win-win,and expanding the depth and breadth of cooperation to achieve the common development and prosperity of the national economy.China and the countries along the “Belt and Road” are geographically close,with close economic ties and strong industry complementarities.Therefore,the economic and trade cooperation between China and this region can fully explore and develop the potential and comparative advantages of each country.Guangzhou SG Company is the first subsidiary of Thailand SG Group in China.Established in 2006.Its main business is to exporting steel/building materials including ceramic tiles & sanitary wares to its parent company in Thailand as well as other ASEAN countries,importing tapioca starch from Thailand to China market,in a long terms,Company's businesses have faced bottlenecks.The company's turnover has been in sluggish in recent years,and its gross profit margin and operating profit are extremely low and even minus profit during Year 2017 and 2018,The company's strategy & business model must be adjusted accordingly in urgent.Firstly,this paper will analyzes the external environment of Guangzhou SG Company,analyzes the macro environment of the company by using PEST theory,then analyzes the industry environment and competition environment of foreign trade companies by using Porter's five-force theory,grasps the current situation and trends of the environment,and Utilizing the benefits & Opportunities for development.Avoiding the threats that the environment may pose.Then,the company conducts a detailed and comprehensive internal environment analysis,and obtains the company's strengths and weaknesses through analysis of the company's core competitiveness,value chain analysis and business portfolio analysis.Combined with the conclusions of internal and external environmental analysis,the development strategy of Guangzhou SG Company was obtained through SWOT analysis.Finally,the implementation & countermeasures was set in accordance with the identified development strategy.Based on the research,SG Company should implement the strategy of focusing differentiation under the existing internal and external resources,To make product and market value maximized,implement product diversification,differentiation and market cultivation,create core competitiveness,and achieve sustainability development of.Combined with the company's development strategy,To get the strategic goals well,SG company has formulated a series of supporting measures in terms of organizational structure and incentive policies.At the same time,it is hoped that the relevant research conclusions can also provide reference for other small and medium-sized foreign trade companies who were in similar situation.