FAW Group Export Strategy Research

Nowadays, in the economic globalization world, almost all the long-term prosperous enterprise using internationalized management. The world economy is high amalgamation, close relation and close cooperation, any country's industry should not only to meet this situation but also make great efforts to be important role, or they can't have status in the world industry pattern and even affect subsistence and development. Products export strategy is an inexorable trend of economic globalization and enterprise internationalization, is an inexorable choice of enterprise's certain period, and it is guarantee for enterprise's sustainable development.This article base on overseas export marketing theory, and combine demonstration analysis with regular analysis to researched China FAW Group Corporation (FAW). Through the analysis about advantage, disadvantage, opportunity and risk of FAW, we get FAW's products export period and some problems. The character of Motor industry and value chain theory determines enterprise's overseas marketing theory, so, after combine the character of FAW, we get a products export strategy that FAW should take, and it will provide some reference for FAW products' export.This article consists of four parts, the brief introduction as followings: The first part research export strategy means of FAW. At present, the economy environment is economy globalization, this means competitor is all the same industry in the world, competition will more drastically. In china, after rapid developing, throughput more than market needs, competition is drastically too; after china reduce the nation protection gradually for automobile industry, overseas competitor goes into china, so, Chinese market automobilecompetition not only is interior competition but also competition between international company and domestic company. We can keep subsistence only to research the global market. So, put FAW export strategy in practice is the necessary condition for subsistence, and it's very important to research export strategy of FAW now.The second part is about strength, weakness, opportunity and threat (SWOT) of FAW. FAW have strength are: Brand is famous in china, so it is advantage for export. FAW have a large number of variety and more series products, and we FAW have strong research & invention ability, they are the good foundation for export. FAW Commercial vehicle have a good quality level in low price commercial vehicle market. FAW have internationalization experience and talent.FAW have weakness are: Have a great difference between FAW and international famous company. FAW competitive ability is weak, and to develop new products with a long periods. The brand has no strong competitive ability. The best commercial vehicle of FAW did not enter the world automobile pattern. Marketing means is behindhand, and overseas marketing system is weak.Opportunity for FAW: Chinese macro economic policy and government policy can push Chinese automobile industry to develop quickly. The world market demand more commercial vehicle in recent years, "FAW" brand commercial vehicle will have more sales space. Different market requirement of developing country and opportunity market provide a large international market. After reset, annex, joint venture and cooperation, FAW has already enter world automobile pattern, this provide more chance to develop overseas market. China's enter WTO and economic globalization takes opportunity that never existed before to FAW. China stronger political status creates more chance for automotive export.Threat for FAW: China's enter WTO takes some challenge toautomobile industry. Brand protection policy of MNC (Multi National Corporation) will despoil of Chinese nation brand, no nation brand will lose home-made products' export. Chinese automotive over invest leads to overproduction, and more competition will be happen. FAW can't enter the biggest international market because the different in all areas between FAW and MNC. FAW have more threaten than before because the competitor which with brand predominance more and more. Some uncertain factor in the future will make FAW lose primary opportunity market.Generally speaking, the product export of FAW Group is in the primary phase, there are some characteristics as follows: FAW Group is a introversive corporation, her brand advantage is in the domestic market; she is weakly situated in the international competition; there are opportunity and challenge together exist on the product export, and challenge is greater than opportunity. However, at the same time, the product of FAW Group has her advantage in sub divisional market. Therefore, we should not expand blindness and should firm the belief on exporting at present.The present export stratagem is constituted in the third part: The size of product export. We should expand the exporting step by step from now to the year 2009, the quantity of exporting should from 10, 000 to 50,000. According to the characteristic of auto industry, our auto products belong to capital dense production, so we should choose the mode of global marketing. According to the value chain theory, Chinese automotive advantage is low cost, and in FAW, production advantage stronger than marketing advantage, so, FAW should adopt global marketing pattern according to the value chain theory. Adopt global marketing pattern express that no different at market requirement viewpoint and products made by standard, but auto is a kind of complicated commodity, while there are some difference on weather and road condition in different area, so, adaptability test should be done before export to ensure they can used in good...