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In recent years, due to the lifting of international trade barriers and the easy access of information through the internet, trading businesses have become more transparent. Consequently, trading companies no longer benefit from the advantage of information asymmetry over suppliers and clients, resulting in their profit margins being compressed from both ends, with some even calling into question the value of their existence. In this fast-changing environment, trading companies must face the challenges of transforming their operations, innovating upon their core values as a middle-man and planning their future strategies.
The research target of this study, Fang Shye Co., Ltd faced exactly these critical challenges. The key issues that the company had to solve were working to establish long term partnerships with both customers and suppliers and creating new business values. Through analyzing the core values of Fang Shye, it''s functional policies and business strategy of how it can continue to stand in business; we also analyze the strengths and weaknesses of two public trading companies with similar product lines-Testrite Group and Bon Fame Co., Ltd - as the reference of Fang Shye future strategy determination. Our study also found that keeping a good relationship with both suppliers and clients was fundamental and essential to continual cooperation no matter what the scale of a business. The study also concluded that a business must constantly take both internal and external factors into account when tuning its strategy and direction, in order to ensure its continual growth in this ever changing industry.
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