The Research Of Development Strategy For CJ Company

CJ Company is a wholly owned subsidiary of Group B,one of the biggest port enterprises in China.In 2010,Group B consolidated its main ports,fleets,port terminals and logistics parks with the group’s former shipping companies as the main part and established CJ company.The company delivered beautiful transcripts in the first four years after its establishment to achieve the rapid growth of operating scale and efficiency.However,since 2015,the company showed signs of both the growth of production and net profit growth stopped which indicating the company is profitability is declining as it expanding its scale.In addition,the company’s market share in the regional market also declined.Therefore,CJ Company is facing the urgent need to further enhance its profitability and market share.After analysis and research,it is found that CJ owns the advantages of capacity scale,agent network and shipping brands,but there are some shortcomings in supply structure,end-to-end service capability and industry synergy effect.Faced with the policy support by Chinese government under the Belt and Road Initiative and the opportunities brought about by the deepening of the regional alliances,the company need to take advantage of opportunities to exploit their strengths to overcome their disadvantages and to resist the direct competition of private-owned enterprises and the potential alternative threats.In order to effectively solve the growth bottleneck of the company after its rapid growth in the past few years and through analysis and research,CJ Company is suggested to set a new strategic goal of improving and upgrading The existing fleet structure and scale,to create quality routes,built the leading domestic and Asian well-known regional ship carriers and stabilize industrial synergies,develop and improve the company’s "end to end" capabilities,with services as the core value,becoming a complete logistics supply chain solutions provider within next 5 years.In order to achieve the above strategic objectives,it is recommended that the company implement five guarantee measures which is to increase investment in the downstream market,strengthen alliance service,conduct a capacity planning and strategic partnership with other companies.