Chinese Logistics Companies Essay Example | Topics and Well Written Essays - 4750 words

Chinese Logistics Companies - Essay Example........................................................................... 20How to unionise strategy for logistics companies in China to fit in the tough market environment 1. accession The subprime crisis has had an enormous effect on the global financial markets. It has also affected the Chinese economy. Chinas economy has been approach with many difficulties which include global slowdown, the undulation of the oil price, pressure of RMB appreciation and inflation. The subprime crisis has been particularly cruel to the Chinese economy. The logistics industry in China is still at the beginning. Although it is developing fast, it has many problems. The out-dated management styles, obsolete cultivation engineering and haphazard planning of capital construction in the national transportation system and so on restrict the development of the logistics industry in China. However foreign competitors pay attention to this potentiality market due to the fact that their alert operational capabilities elsewhere can be effectively utilized in China. Flynn (2006) argues that foreign logistics companies entering the Chinese market, especially after WTO accession, brought tremendous pressure to bear on the local companies. This situation forces them to improve their technology and reformulate their strategy. At the same time, the Chinese government recognizes the importation of the logistics industry to Chinas continuing economic prosperity. Millar (2006), for authority has shown that the Chinese government has seen logistics as a strategic imperative. deliberate deregulation combined with immense enthronization in the transportation infrastructure to improve the logistics development is an needful outcome of this desire. While, depending on the...However foreign competitors pay attention to this potential market due to the fact that their existing operational capabilities elsewhere can be effectively utilized in China . Flynn (2006) argues that foreign logistics companies entering the Chinese market, especially after WTO accession, brought tremendous pressure to bear on the local companies. This situation forces them to improve their technology and reformulate their strategy. At the same time, the Chinese government recognizes the significance of the logistics industry to Chinas continuing economic prosperity. Millar (2006), for instance has shown that the Chinese government has seen logistics as a strategic imperative. Gradual deregulation combined with immense investment in the transportation infrastructure to improve the logistics development is an inevitable outcome of this desire. While, depending on the governments help is not enough. The logistics companies must revise their strategies to promote their competitive advantage to coordinate with the policy. If they cannot they will be left behind. Realizing how to devise strategy for logistics companies in China to fit in the tough market env ironment is becoming more than and more important to the logistics companies.The aim of this research paper is to highlight on logistics op