Analyze The Competitive Advantage Of China's Auto Accessory Enterprises After It's Entrance Into WTO As Jiangsu Tongrun Machanic & Electric Group For Example

This paper takes Jiangsu Tongrun Machanic&Electric Group as acase in analyzing the competitive advantages of automobile accessoryenterprises in the global market after China's entrance into WTO.Judging from the trend of automobile industry of the world in therecent years, we can safely say that the development center of theautomobile industry has shifted to automobile accessory industry. Asthe base of the automobile industry in our country, the importance ofautomobile accessory industry in the export of China's automobileshould be quiet clear to those who are concerned, and the problemsexist in it should be known as well.As a member of many automobile accessory enterprises, JiangsuTongrun Machanic&Electric Group is the leading enterprise of Jackproduction. It is also the producer of many other accessory. Its exportcovers a wide range, from the products of its own production to theproducts made in other smaller enterprises which has been purchasedby its import &export company. The author of this paper has got aknowledge of the operation mode of the company in detail during theeight months exercitation in the International Trading Department andHuman Resource Department of the marketing company which is asubsidiary of the enterprise. The author holds it as a firm belief that itis practically meaningful in taking this as a case in analyzing thecompetitive advantages of automobile accessory enterprises in China.The main part of the paper is divided into five parts.In the first section, the concept of Enterprise's keycompetitiveness and some theory base are presented to the readers.Key competitiveness was brought forward by Frahalad and Hamel in1990. It refers to the accumulating knowledge in the structure,particularly the knowledge of how to harmonize different productionskills and the knowledge of organically combining the varioustechniques. The key competitiveness has five characteristics: value,rareness, uniqueness, persistence and the ultimate aim lying onachieving the value which is valued by the customers. Even though acompany is a combination of ability of various power, keycompetitiveness is by no means a container of everything. It is dividedinto two abilities: operation ability and system ability. In the final partof this section, the basic theory of key competitiveness is introduced: acompany should rely on three aspects of proliferation, conformity andexertion in cultivating its key competitiveness. And these aspects formthe base part of the key competitiveness of a company.The second section is about the analysis of international market ofChina's automobile accessory since China's entrance into WTO.Firstly the analysis is given on the internal environment the automobileaccessory companies are facing since the entrance into WTO. Theenterprises of automobile accessory operate a more important functionthan manufacturing industry of completed car in the industry valuechain. It is not, however, in the leading position of automobile industry.In order to maximize their own interest, completed car enterprisestransfer the pressure of price reduction to the accessory enterprises,which makes a severe internal situation for the accessory enterprises.Then our analysis transfers to the external environment the automobileaccessory enterprises are confronting, by analyzing the investmentmade by the multinational companies in China. From a series ofstatistics, which will be given in the paper, we can see that sinceChina's entrance into WTO all the automobile accessory companieswhich are among the top 500 enterprises of the world have all beeninvesting in China. By setting up joint ventures orsingle-proprietorship companies, they have become the leadingenterprises in China's automobile accessory industry. And this hasformed a great impact on China's native companies. Section three in on the influence of China's entrance into WTOon China's automobile spare part industry. The author first gives usanalysis on the changes in the automobile enterprises since theentrance into WTO. Since China's entrance into WTO, the venturejointing and reorganization of the completed car companies makes thechange of the main body of the automobile market. And the high-speeddevelopment of automobile industry has caused the change of themarket structure. Secondly, our focus is put on the influence of thepurchase tide in the world wide scope on China's automobile sparepart enterprises. The influence mostly lies in: having facilitated theadjustment of our economics and industry structure, being good toenlarge the export and upgrade the structure of export, to set up aquality attestation system which is more acceptable in according withinternational standard, and being beneficial to the forming a group oflarge-scale and internationally competitive automobile accessoryenterprises. The adverse effect of China's entrance into WTO on theautomobile accessory industry of China is shown in the last part of thissection. The fourth section talks about the advantages and disadvantagesJiangsu Tongrun Mechanic & Electric Group has after China'sentrance into WTO. As a automobile accessory enterprise, JiangsuTongrun Mechanic &Electric Group has showed its advantages in thefollowing aspects: large-scale production, marketing, manpowerresource, quality, credit-standing est. And its disadvantages lie in: theprice advantage is fading away gradually; the cost advantage is losingcompleting; the technique advantage is reducing; the unseasonablemanagement mode hasn't been changed; the value is rigid. Theanalysis of the advantages and disadvantages makes us realize such atruth: to keep its advantage in competing with the like product andexpand the occupation rate in both internal and external market,Jiangsu Tongrun Mechanic &Electric Group should form the keycompetitiveness. As a main part of the paper, the section five is on the analysis andcultivation of the key competitiveness of Jiangsu Tongrun Mechanic&Electric Group. We first talk about the proposition of the keycompetitiveness of Jiangsu Tongrun Mechanic &Electric Group. Inorder to adapt to the changes brought by the changes of the China'sexport policies which in return cause the change of structure ofChina's automobile accessory industry, and at the same time grasp theopportunities brought by China's entrance into WTO, Jiangsu TongrunMechanic &Electric Group needs to form its key competitiveness inits development. The key competitiveness of the company should be based on the...