Strategic Research For China’s Automotive4S Sale And Service Enterprises Based On Competitive Advantage Theory

Automotive industry plays a critical role in China’s national economics. Itcomprises manufacturing, sales, services, etc., involves several key industry sectors andhas a long value-chain composition. As a very important part of the overall industry,auto sales and service have become determining factors of the prosperous future growth.China’s4S auto sale and service business has experienced unprecedented fastdevelopment after joining the world trade organization (WTO) in2001, but still fallsbehind the business in the world’s key developed countries regarding the managementphilosophy, techniques, business mode and so on. How to close the gap, overcome theshortcoming in the development and improve the competitiveness has become animportant challenge for many domestic4S auto sales/service enterprises.Competitive advantages theory, industrial economics theory, core competencetheory and competitive strategies analysis practice are very important methodologies toanalyze an industry and enterprise’s management state and to determine strategic policyin both academic research and commercial operation. This dissertation utilizescompetitive advantages theory, industrial economics theory and competition strategiesanalysis to summarize the current situation and development trend of domestic autosale/service business. The author studies the advanced management models fromforeign auto enterprises, combines it with China’s cultural/economic background,explores and researches on formulating development strategies and competitivestrategies to enhance the domestic auto enterprise’ core competitiveness.This dissertation consists of seven chapters: The first chapter describes the researchbackground, methods and content. The second chapter introduces competitiveadvantages theory, industrial economics theory and competition strategies analysis. Thethird chapter makes analysis on the current situation and challenges which domestic4Sauto enterprises are facing. The fourth chapter uses structure, conduct, performanceparadigm (SCP analysis) to analyze and summarize the characteristics of the4S autoindustry. The fifth chapter is the core part of this thesis, which researches on thedevelopment strategy and competitive strategy making for4S enterprises. The sixthchapter uses Xuanyu Auto Group as an example, to implement the corporate strategyselection and methodology proposed in this paper. The seventh chapter summarizes thisthesis and foresees the prosperous future for China’s4S auto sales/services business.The author wishes to use theoretical analysis and practical implementationresearched in this dissertation to develop approaches and principles to better promoteChina’s auto sales and service enterprises for a rapid future development.