Organizational Studies, Based On The Scp Paradigm Of China's Car Industry

The auto industry is the important pillar industry in its national economy, and the car industry is an important part of the auto industry. So car industry's healthy rapid development plays a very important role in promoting the national economy. Chinese car industry set up in the 1950s.It has undergone remarkable changes in every respect in the past more 50 years. Especially following the entry of China into the World Trade Organization, the international competition in front of Chinese car industry has become stronger and stronger. In Jun. 2006, the National Committee of Development and Reformation issued the new 'Policies for the Development of Auto Industry' and carried it into execution. These policies have made a full plan for the development of Chinese auto industry in the coming decade. For the five years interim of China's entry into WTO will be over in 2006, the further release of the protection from government will bring a larger challenge on our car industry. Under the globalization situation, we must use new thought to consider and research the development of the industry, to constitute the forward-looking and reasonable industrial policy, achieve the adjustment and optimization of industrial organization, and to improve our international competitiveness, which is also the purpose and significance that this paper lies in.In an aspect of industrial organization, we will set up an S-C-P frame to make an all-around analysis on the status and development of our car industry. Theory of industry organization is study the large-scale production, the competition between enterprises and monopoly inside a specific industry. It seeks the effective competition between large-scale production and market competition vigor. Firstly, the paper reviews the current situation of industry organization research at home and abroad, which is the theory base for the structure, enterprise conduct and performance. Then the paper reviews the development stage of our car industry and analysis the structure, enterprise conduct and the performance of Chinese car industry respectively. In the paper the structure of china car industry is Omni-bearing studied, the concentration degree, scale economy, product differentiation, barrier for entering and withdrawing of production are deeply demonstrated. From the enterprise conduct, the price competition of the car products is very fierce. The price of the car products has decreased much comparing the end of the 1990s last century, the differential of the products and advertising tactics can enhance the entering barriers of the potential entrants, but this kind of influence is fading gradually. The behaviors of annexation and recombination happen often. But the behaviors are promoted by the government, not by the market mechanism. From the performance, the profits of the car industry of our country are quite high. The profits are far more than the international car manufacturers, the Chinese car industry has already promoted quickly on the engineering level. But we are still in the stage of importing technology and the input of research and development is very low.Based on deeper analysis of the car industry organization, the paper presents a proposal of countermeasures for optimizing our car industry organization policy which mainly include: enhance the behavior of annexation and recombination, rise the level of scale economy and concentration ratio; reduce the barrier for entering and withdrawing of the government, rise the barrier of entering; enhance the level of our research and development.