Case Study Of Changchun Faway-johnson Controls Product Strategy

2015 automobile industry is facing the new development opportunities and challenges. In the following five to ten years, real test from market for auto parts manufacturers will become really critical. Especially because of constantly saturated vehicle market and shrinking of the auto parts industry, Faway-Johnson will face real problem as a result. Faway-Johnson is now under the shelter of the FAW Group, taking a larger share of the market of auto parts suppliers for a single customer with seating and interior products can meet the needs of enterprises to survive at present, but how to strategically adaptation future severe market environment, and let the Faway-Johnson have the ability of sustainable development becomes the real dilemma which our enterprises are facing.As internal enterprises of FAW, Faway-Johnson company had formed a unique way of researching and developing product after years of practicing, which gives Faway-Johnson a clear competitive position for meeting the FAW group customer’s needs. But equipeed with a provincial R&D center, only producing certain products and meeting single customer is far from good development. So at the same time, we also studied of the car seat and car interior of other non customers demand products, and have the ability of independent research and development automobile seats and automotive interior products. But due to the limitations of internal enterprise, Faway-Johnson although has the lead in the same industry product research and development capabilities, but has not been able to make this kind of advantage to be able to tested by the open market, which became Faway-Johnson’slarge and awkward predicament in the market of escalating competition.In this paper, through objective analysis of the macro environment of the policy environment, economic environment, technical environment and social environment, we get the conclusion that both the support from the national policy level, from the national economic environment, or from the technology development trend and social environment, the guest view as a matter of fact, just within the enterprise as the development path is impossible to realize the enterprise’s sustainable development.Followed by the for auto parts industry and an automotive seating industry of industry analysis, and the combination of Faway-Johnson Company under the macro environment and industry environment with the advantages and disadvantages, draw the Faway-Johnson company if you want to occupy a certain advantage in the auto parts industry, it is necessary to choose the cost leadership strategy, differentiation strategy and diversification strategy. Through cost lead, consolidate and expand the market share of target market, by differentiation strategy to expand new customers and achieve a win-win situation of competition and cooperation; the diversification strategy to form a Faway-Johnson characteristics of product research and development system. Only in this way the strategic choice and application can lead Faway-Johnson completed the strategic objectives of sustainable development.