A Research Of JC Company’s Positioning Strategy For Chinese Market

When entering the 21st century, there has been a continuously rapid development in China’s economy, and consequently a rise in people’s living standard. Six years in succession from the year of 2009, by exceeding the United State, China has been the No.l vehicle market in the world in terms of the annual production volume and the annual sales volume. In the year of 2014, the vehicle’s production volume in China amounted to 23.72 million. At the moment, many international automotive manufacturers have entered China to establish joint-venture plants to realize the localization of the auto production and the supply of vehicles. As the basis for the development of automotive industry, auto parts industry is its important part. With the globalization of the world economy, the tendency to market integration and specialization, more and more international auto parts companies have been attracted to step into China by the huge volume of vehicle consumption and the vehicle ownership.As a well-known multinational auto parts corporation, currently in Chinese market JC company has a stable customer group and market share. However, due to the situation that so far JC company has the production plants in Europe, America and India but not in China, so for this market JC company is proceeding the business in the way of importing parts from its global plants. Therefore, compared with other suppliers which have realized the local production, JC company has some weaknesses to prevent its business development and market share expansion in terms of the logistics timing, product cost and the relevant project services. To achieve the development strategy set by the group for the further expansion on its business scale in Chinese market, JC company has to integrate its internal and external resources and position the product with core competitiveness to maintain the sustainable development. This article firstly analyzes China’s macro environment with PEST theory, then making use of Porter’s Five Forces Model to analyze the auto parts industry structure and the competition situation, especially the threat from future alternatives. Next it uses Boston Matrix Model to position the star product among its products. On the other hand, with the guidance of the company’s goal, by means of the analysis of its internal resources including advantages and disadvantages with the theory of SWOT, JC company found out the solutions to deal with the opportunities and threats in the market. Then through carrying out a scientific and systematic market research, positioning of target applications and self-positioning in the market was made. Finally with these market information and the proposed feasible marketing strategies, the group’s boarder of directors approved the investment of setting up a production plant in China. As well for JC company, step by step it realized the strategic objective of expanding the business scale in Chinese market.