Southern Company Motorcycle Core Competitiveness Study

China has already become No 1 manufacturer of motorcycle in the world. Lately the market demand of domestic motorcycle has entered stable development phase, with an annual growth rate of about 8%. It is expected that the domestic demand shall be around 12,500,000 by the end of 10th 5-year plan and reach 15,000,000 in year 2010. Presently,The motorcycle export reached 2,000,000 per year. Since China entered WTO the motorcycle export market has been growing step by step in a stable trend.Due to the standardized and intense competition, a comprehensive elements consisting of cost, technology, marketing skill, brand prestige shall impact on the enterprise competition status. Competition depending on one-sided advantage has gone once and for all. In the coming 3 years the domestic competition shall be focused in cost and price. The enterprise not possessing the advantage of low cost shall be eliminated during the competition of this round. Core technology skill shall apparently play an important role than ever before. Afterwards, the advantage of core technology skill shall produce a decisive function in rival's position, meanwhile low cost superiority shall also provide a significant foundation.A comprehensive analysis and evaluation have been made to the cost, technology, marketing ability, brand prestige, enterprise source and other rival skills. The competitive strategy is here proposed for SAEC to " set up low cost superiority to win survival opportunity, intensify core technical superiority to ensure continuous development". Actions and proposals have been put forward in a great variety of respects including organization reform, resource structure adjustment, low cost superiority, intensifying core technical advantage, marketing skill and brand prestige.