| DPCA (Dongfeng Peugeot Citroen Automobile Company LTD) located in one of the three car-producing bases suffered a surprising loss in 2004: the output and sales of it declined 16.54% and 13.57% compared with the same period of last year. The total loss in 2004 was 600Mn RMB, which led to a sharp contrast with the fast increase tendency of the auto market. What on earth caused the today's situation of DPCA? Strategically, in DPCA exist three problems: economic scale, strategic co-operative partners and strategic orientation. In the aspect of operation, uncertainty of predicted market demands and long-term product order, low market response, and serious overstock; low-efficiency of organizing departments, insufficient availability of staff's incentive systems, frequent talent drains of top managements and technicians; obscurity of product orientation and targeted customer group, which failed to form its advantages, realize key breakthroughs of subdivision markets, create brand-value orientation of obvious significance for final users and cause difference of product prices, and was finally lowly-accepted by consumers though it's of top brand. My article has analyzed the living environment of DPCA: from macro-environment, with the sustainable development of national economy, China's car industry is meeting an unprecedented development opportunity; from the environment of the industry, China's car industry has stepped into a private consumption era.On the other hand, with the annual decline of duties of imported cars, non-tariff barrier of cars like quota systems has been cancelled in 2005, therefore, there will be more competition in domestic car market. Then, the outer opportunities, threats and self-strong-and-weak points are to be analyzed. The total weighted score of the outer opportunities and threats is 2.35, slightly lower than 2.5. According to the current situation, the company is possibly further decline of the market position. DPCA is advantageous in that the company has good brand cognition in the private-car market and excellent enterprise image in government and society, while the shortcoming is mainly the inability of output, heavy finance burden and serious insufficient supply of new products. The inner advantages are a little bit higher than shortcomings, which create advantages for DPCA development and also leads to its difficulties. How will DPCA settle this problem? Strategically, it's key to resolve obscure strategic orientation, namely, make product orientation, targeted market and specific customer group clear. In the aspect of operation, the three major problems should be settled: overstock of car entirety and high pressure of fund use. DPCA should take the consideration of adopting supplier concentrated-management stock mode, establish strategic relationship with core distributors and reduce stock on pre-condition that the market can be satisfied; then, brand establishment and marketing, and different market subdivision strategy are the cores of the future marketing strategies, meanwhile, DPCA should combine different brand operation concept to execute the operation strategy of double-brand like Peugeot and Citroen to reach the tangible effects of powerful brand; at last, the organizing department and human resources should focus on strategy and operation goal, integrate and recreate the current organization, staff allocation and business flow and improve the whole organization's survival and innovation abilities of the fierce competition of the market. In the aspect of human resources, DPCA should optimize the current salary incentive system to ensure the competition and incentive of salary level. It should not merely maintain talents, but attract more talents, especially managements to join the team of the company. |
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