Research On Auto Maker's Product Strategy And Automobile's Diffusion Concerning Pirated Part

With a rapid development recent years, auto industry is a pillar of the national economy. Automobile is a special consumable for the maintenance is needed during the whole product life of automobile after it has been sold. And the expansion of car accessories market is driven by the auto industry. As a result, the influence of car accessories is indispensable when studying the diffusion of car and the firms' behaviors in the automobile market.This paper had studied the production strategy of auto makers, the diffusion of cars and accessories, and the promotion strategy of new products while the piracy accessories were taken into account. The organization of the thesis is as follows:Chapter 1, as an introduction, is an account of the background of the automobile industry and the accessory market, a review of the development of piracy research and diffusion theory, following a description of the contents and the meanings of the study.Chapter 2 researches the optimal production strategy for manufacturers of cars with different patterns. Based on the investigation of the relationship between the automobile population and the piracy rate of accessories, three patterns including co-existence, monopolization and restraint are introduced. Analyzing the variation trend of the cost and quality of parts as the quantity changes, the game models of profits in different patterns are developed. With the numerical simulation of each model, the optimal production strategy is analyzed. Comparing the profits of manufacturers in the event of automobile replacement and no-replacement, the results indicate that manufacturers gain more profits if automobiles are upgraded when the automobile population reaches certain level.In chapter 3, the diffusion of contingent products represented by automobile and accessory is studied. Contingent products consist of primary products and secondary products, and the potential market demand of secondary products depends on the sales of primary products. Two co-diffusion models are developed as one considers the influence of counterfeit parts and another not. For automobiles and parts are typical contingent products, the sales data of CMARY in America and Audi A6 in China is used to emulate the diffusion model. Analyzing the external and internal influences in the diffusion model, some suggestions of market strategy are put forward for manufacturers.Chapter 4 focuses on the product line strategy. How to design and manage the product lines to get more profits is studied. The consumers are sectioned according to their expect price to spend in this chapter. A two-period model is presented, and manufacturers provide only one product in period one while both old product and a new product will be provided in period two. In the beginning of period two, relevance and price increasement of the new sequent product are determined by manufacturers according to the total sales of old product. The optimal relevance level and price of the new product when manufacturers get most profits in the second period are analyzed.Chapter 5 summarizes the main content and significance of the study. The innovation and disadvantage of this paper and discusses about further study are presented in this chapter.Innovations and contributions of this thesis are briefly summarized as follows:Firstly, Based on the positive correlation between piracy rate of accessories and automobile population, three patterns——co-existence, monopolization and restraint——are presented. From the perspective that manufacturers with different output use different processing methods, the relationship between output, quality and cost is analyzed. The optimal production strategy in three patterns and the profits of manufacturers in the event of automobile replacement and no-replacement are researched. The results can provide guidance for manufacturers to control the output and get most profits.Secondly, we studied the co-diffusion of contingent products represented by automobile and accessory. Interactions between primary products and secondary products are considered in the co-diffusion model. The simulation results indicate that both the genuine and counterfeit parts promote the diffusion of automobiles. Analyzing the key factors in different stage of the diffusion process can direct the expansion strategy of manufacturers in diffusion stage.Thirdly, we studied how to designed and manage the product lines to get more profits. The conceptions of price scope and overlap are introduced. The results is helpful to manufacturers of series products.