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Research On Strategies For FAW Group's Exploitation Of American Auto Market

Posted on:2008-07-30Degree:MasterType:Thesis
Country:ChinaCandidate:X L ZhangFull Text:PDF
GTID:2189360215953164Subject:Business Administration
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As the economic globalization, the combination among automobile industry increases obviously. Multinational groups carry out the globalization strategy. As part of the automobile industry, export has already become one of the main means of development of every auto company. After entering WTO, as China has been part of the economic globalization; China's auto makers must learn advanced experiences. When they explore domestic market, they develop international auto market simultaneously.USA is the most opening auto market in the world with the biggest market capacity, where auto markers from different countries compete each other to occupy this market. GM, FORD, and Daimler-Chrysler are symbols of American auto with one-hundred year history, who dominate the biggest auto market globally for most of time of last century. However, nowadays, the structure of American auto market has changed completely. Because of the drastic competition, the domination of three biggest has been replaced by sharing with newly aroused auto makers globally. Take car for example, the market share of American cars are only 45%, Asian cars 43%, European cars 10%. This sales volume (1700000 units) No. 1 American market has to face an entire revolution, pushed by Globalization. It will not only change environment of American auto industry, but influence American consumer psychology and behavior. Noticing this change and studying the influence will have significant meaning in insight international auto market structure and predict the future auto market.FAW is the biggest auto maker, with a wide series of autos and auto parts are also no. 1 in China. Entering 21 century, FAW is already successful in"production and sales volume over 1 million", now they are stepping to"digital management"and"globalized business". The aim is to get involved in global business, increase participation of international competition and enhance the capability of division of international business. FAW globalized management strategy has made great progress, nowadays FAW owns 49 joint ventures, introduced and applied a series of advanced products, technology and management methods. The reason why Chinese auto export volume is high is because of the imbalance between Chinese auto industry and auto market. Two specific reasons: firstly superfluous production capability, secondly, auto makers hope to improve their brand image through export.As biggest auto maker, FAW carry out actively a collectivization strategy, establish supply chain system, get involved in international division of auto market, make use of resources, and integrate auto industry, so that FAW can occupy international market.Concerning auto parts, represented by Toyota engine, FAW Sihuan engine, FAWER YTK chassis, Valeo, and etc. FAW auto supply chain is completed and step on a new higher. Engine, chassis, electronic parts, inner parts, light, molds, and etc. has formed a assembly and molding production capability. And FAW has become biggest modern auto part production base with the most complete variety of parts and most advanced technology. And some suppliers open OEM and OES market.This article begins from analyzing American auto market environment and features and demonstrates relative successful experiences. After the analysis of feasibility, come up with FAW development strategy and concerning marketing tactics.According to international trade theory, different sales environment, different sales strategy will have effect on auto product sales. Though the study of International trade, combined with my working experiences in FAW, I understand deeper what I have learned:First of all, when analyzing some international market, or making sales plans, you have to know clearly about the target market. The political and management environment, economic and culture background are essential to adjust product sales plan and establish exploration strategy and sales strategy. Secondly, competitors and product features are also important for the product orientation in target market. Furthermore, it's important to be familiar with the environment of international auto market, know how to enter international auto market successfully, and make suitable sales tactics.The subjects this article study is from the understanding of international trade knowledge, combined with working experiences. Though the investigation and analysis of American auto market, combined with FAW product features, compared with competitors, absorbing successful experiences, I suggest a series of development strategies and sales tactics aiming at American market. In the meantime, sales system establishment, high-level employee fostering, dynastic market change tracing, and the aim to occupy market continuously are highly emphasized.I believe though our constant efforts; we may find an effective way to explore American market.
Keywords/Search Tags:FAW, USA, Automobile, Marketing strategy, tactics
PDF Full Text Request
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