The Competitive Strategy Of Volkswagen FAW Platform Co., Ltd

With the development of economy and the improvement of people’s livingstandard, GDP and per capital disposable income continue growing. Prosperity andbright future of vehicle marketattract a lot of foreign auto parts enterprises.Theyinvested wholly owned or joint venture into china. According to statistics, at presentthere are more than700foreign investmententerprises in China among the over2000auto parts company.They generally have strong financial and technical strength, andhave the advantage position in the competition. In addition, the price war betweenthe automotive industry and vehicle factory has also spread to the auto parts industry,the profits of auto parts has been compressed.The competitionhas become more andmore fierce.At present,there are four main types of auto parts in the market, which areforeign owned enterprise, Sino-foreign joint venture auto parts enterprises, privateenterprises and separated from the state-owned large automobile group auto partsenterprises. Volkswagen FAW Platform company limited is a joint venture ofGerman Volkswagen Group and FAWER Automotive Parts Limited Company,whosemain products are car front axle and rear axle modules module, left and right frontsuspensionmodule, brake pedal assembly and the clutch pedal assembly.Under thefierce competition in the environment,how to develop appropriate competitivestrategies,is a serious problem that the company must face and thinking.The paper is divided into four parts:the first chapter describes the researchbackground and significance of the competition.The second chapter analyzed themacro environment including the political and legal environment,economicenvironment,social environment and technological.Even the internal environmentincludes internal resources and core competencies,the advantages and disadvantages also being analyzed.The third chapter analyzes three basic strategiccontent,combined with the company’s strategic objectives,and identifies competitivestrategy.The fourth chapter make implementation plans for further measures toachieve the above-mentioned objectives.Based on the analysis of the company’s internal resources and externalenvironment,we develop a competitive strategy for the company.That is,mixed withhigh-quality and low-cost competitive strategy, entrance the domestic market tooccupy a favorable position int the market.With the supply chain strategy,blend inthe auto parts supply chain, Coordinated with vehicle manufacturers to build thesupply chain Rapid Response System,together with vehicle manufacturers toforecast the market demand effectively.And finally,establish a coordination supplychain of information systems.In this paper,the macro environment,internal environment and competitiveenvironment of Volkswagen Faw Platform Components have been studied.Throughthe use of Porter’s five competition model,we develop the company’s target marketand strategic goals.We proposed strategies to ensure the effective implementationcarry out.We try to promote the platform Co. To become the industry leader andhave a long-term continued growth.