The Research On Developing Strategy Of Lear Changan

With the reform and opening up and joining the WTO, China’s economyhas experienced10years of rapid development. Being as the pillar industry ofnational economy, the auto parts industry is a reflection of developing status ofnational economy, so the auto industry has also undergone enormous changes,and led to the rapid development of the auto parts industry. Huge marketpotential attracts the global auto enterprises and related fields enterprisesscrambling to China to invest in various ways to form a competitive marketsituation. Since global financial crisis in the year of2008, with China’s sustainedeconomic growth and the explosive growth of China’s auto industry, the Chinesemarket has become a key market for auto parts multinationals. And the successin the Chinese market is a key profit growth point and has become one of themain subjects for them to study.As the object of this study, Lear Changan (Chongqing) AutomotiveSystems Co., Ltd.(hereinafter referred to as Lear Changan) is experiencingrapid development, and now faces a more complex competitive environment,increased uncertainty and risk. How to face the changing external environmentand fierce competition to achieve sustainable development; What developmentstrategies can guide Lear Changan to take use of its own resources andcapabilities to turn the tide, to meet the challenges and seize good opportunities;choose what kind of ways to implement the development strategy to achieve thestrategic objectives, which are the problems Lear Changan has always beingconsidering and solving.Lear Changan’s development strategy is analyzed in this paper, and it istried to reveal the internal and external motivation of the development.Competitive strategy is the basis of this research, while PEST analysis, theauto industry and auto parts industry analysis, further car seat industry analysiscompose of external factors for enterprise development. The resources andcapabilities, the advantages and disadvantages are the inner determinants of thedevelopment.SWOT analysis is adopted to reveals the company’s strategy based on theoverall development environment; Combined with business reality, the way toachieve the strategic objectives are suggested; in the end, the strategic controlmethods are proposed.