Research On The Competition Strategy Of Volvo Brand Sales In Changchun Wearnes

With the development in recent years, mergers and acquisitions in the automotiveindustry appeared one after another. For example, Proton acquired Hummer,Volkswagen acquired Porsche, SAIC acquired Ssangyon and so on. The developmentof these companies after the acquisition is also mixed. And since2011after beingacquired by Geely, Volvo Cars has become the focus of attention in China’sautomobile industry. But after its acquisition by Geely, whether to adapt to China’slocation, and how to deal with the cultural differences both are Volvo’s challenges. AsVolvo dealers, how to face opportunities and challenges, and how they combineChinese local characteristics to open China’s potential vast market. This series ofquestions are all the focus of this paper to study.This paper studies "Changchun Wearnes Automobile Sales Company",one of thedealers of Volvo’s. Firstly, we presented and evaluated the history and thedevelopment of the Volvo car brand after the acquisition. We found that after theacquisition of Geely, Volvo’s sales have a rapid growth in the world. And through aninvestigation of Changchun Wearnes, we preliminary analyzed the current situationand problems in the Volvo car sales process of Changchun Wearnes.And we foundthat in the face of huge market opportunities, Changchun Wearnes is also affected bythe less car holdings in local market, shorter history of itself and other factors.Secondly, on the basis of management theory, by using a variety of managementconsulting tools we conducted a comprehensive analysis of Changchun Wearnes,including its internal and external environment. At first, we used EFE Matrix and IFEmatrix to score Changchun Wearnes’ external and internal environment. The two totalscores were2.45and2.85, which indicates that the internal and external environmentof Changchun Wearnes are better than the general level, but there is still a large spacefor its development. On this basis, the paper also takes advantage of the SWOT matrix to gradually aggregate the strengths, weaknesses, opportunities and threatsChangchun Wearnes faced. And with its own situation four useful strategies includingSO, WO, ST and WT for Changchun Wearnes are proposed.Finally, we analyzed the localization features of the Volvo China strategy fromfour levels including technical and research, procurement and production, brandingand marketing, and management and personnel. After a comprehensive analysis, wetook advantage of the Space Analysis Matrix strategic to analyze the choice ofcompetitive strategy of Changchun Wearnes and determining the best strategy is thedifferentiation strategy of the competitive strategies. Finally, we designed thedifferentiation strategy for Changchun Wearnes from service, channels, personnel andimage four angles, combining with the developments of Changchun Wearnes. Afterthe design of differentiation strategy, the paper proposes six concrete steps fromidentifying possible differences to the assessment of the effect and the neededsafeguards of culture, science and technology, personnel in the process ofimplementing the strategy. In addition, from the positive and negative aspects, wealso separately explained the significance and risks of Changchun Wearnes, generatedby the differentiation strategy.In summary, through the example of Changchun Wearnes Volvo car salescompany’s analysis, this paper aims to provide a Volvo car dealers with references onfuture development strategy in the northeastern region and all the country. And wealso hope to provide some recommendations and help for the design andimplementation of their brand strategy’s localization, and hope to provide a referencefor the localization of brand strategy of other multinational brands.