Study On The Strategy Of Sichuan Auto Industry Group Corporation

Sichuan Auto Industry Group Co., (SAIG) a second class auto manufacture confirmed by state, formerly second grade state owned enterprise, has capacity of manufacturing 15 thousand units of cross-country vehicle and bus annually. 'YEMA' model serious cross-country vehicle and bus had high reputation in southwest and northwest of China from mid-post 80s to mid-post 90s. Till mid-post 90s,market shrank gradually nearly stopping manufacturing. Though partly for policy and market demand changing, but main for SAIG from thriving to survive is for the unclear property institution, the lack of scientific strategy management, and internal management in enterprise.With the healthy development of China's economy, supported by favorable policy and the improving of people's living standard, market demand is rising rapidly, under a serious favorable micro environment, such as the unique characteristic of bus industry: Labor-intensive, low-concentration of manufacturer and not so strictly technology and capital requirement compared with car manufacture, Puling Group-a privatized enterprise good at capital operation, has successfully finished merging with SAIG under beneficial for both side. For this Puling Group overcame the barrier of state policy, entering the fast-growing bus industry.This thesis, based on intensive analysis of micro economy, bus industry and internal environment of the enterprise, conclude from the attractiveness of bus manufacture facing, definitely point out bus industry is comparatively attractive in the near future. Now entering bus industry is still lot room to growing. By using analysis tool of SWOT (strength, weakness, opportunity and threat), the author concludes the strategy from various aspect for post-merge enterprise, that enterprise should start from manufacturing common and less-luxurious grade large and middle-sized bus, gradually moving to luxurious model.To ensure the enterprise reach the target of manufacture 1,500-2,000 units in short-term, 10 thousand in long-term annually, low-cost and differential marketingand operation arrangement strategy should be implemented. The author concludes that under circumstances of fast-growing bus market with leading brand having emerged and competition still at a low level, SAIG should emphasis on market segmentation and product development so as to making a competitive edge in segmented market.