A Probe Into JS Group' Developing Strategic Alliances

After more than twenty years' development, Chinese motorcycle industry has overtaken that of Japan and has taken the first place in the world. Due to the relatively low entry barrier in the past, a lot of enterprises have entered the motorcycle industry. Being backward in technological innovation, Chinese motorcycle enterprises mostly compete disorderly in low-end market by means of price war. With more and more cities banning motorcycles, it is very hard for motorcycle enterprises to expand their markets. Global economic integration and China's accession to the WTO have brought opportunity as well as new challenge. Chinese motorcycle enterprises are faced with the direct competition from the foreign motorcycle enterprises, which makes the competition in the industry more furious; on the other hand, because of vicious competition between domestic enterprises, Chinese motorcycle industry is badly in need of conformity, which is good for normalizing management and enhancing the entire competitive strength of the motorcycle industry. Faced with challenge, in order to grasp the opportunity provided by history, Chinese motorcycle enterprises must enhance their strength and gain competitive advantages. This paper considers that nowadays the competition becomes so furious that any single enterprise cannot gain competitive advantages with its own resources and capabilities by traditional means. But enterprises can enhance their strength by developing strategic alliances, making full use of external resources and exerting the advantages of internal resources. Consulting plenty of monographs and documents, based on survey of motorcycle enterprises, this paper takes JS Group as research object, makes research on the necessity for Chinese motorcycle enterprises to develop strategic alliances, explains why alliances are the source of sustaining competitive advantage for enterprises, tries to form a theoretical framework of motorcycle enterprises developing strategic alliances and gaining competitive advantage. As for the research work, this paper firstly analyzes the macro circumstances of Chinese motorcycle enterprises applying the analytical method of PEST, and expounds the status quo of motorcycle industry applying five forces model; then evaluates enterprises internal resources and capabilities applying VRIO framework; then puts forward the viewpoint that developing strategic alliance is the necessary strategic choice for JS Group and analyzes JS Group's choice applying joint venture decision- making model; after that, discuss why strategic alliance is the source of enterprises sustaining competitive advantage; at last, puts forward the research results of this paper: Chinese motorcycle industry is badly in need of conformity; developing strategic alliances is efficient strategic choice for Chinese motorcycle enterprises; strategic alliance is the source of sustaining competitive advantage for motorcycle enterprises.