The Strategies Of Optimizing The Distributive Channels Of Automobile Glass Produced By Fuyao Glass Inc. In The U.S. Market

Against the background of steadfastly growing GDP and the booming automobile industry, the consumption of automobiles have stably increased, and resultantly the market of car spare parts and automotive accessories has experienced an upturn over the past couples of years. China’s industry of automobile glass has also grown at a strong pace. It has well supplied Chinese automobile manufacturers with domestically made glasses and enabled them to get rid of overreliance on imported spare parts. In addition, many competent manufacturers in the industry, with their first-class products, have become strong competitors with prominent enterprises, such as Saint-Gobain and Nippon Sheet Glass, in the international market. Among them is Fuyao Glass Inc., widely considered as the best automobile glass supplier in China and the second best in the world.Fuyao Glass Inc. occupies near 70% market share of automobile glass in China. That said, roughly seven out of every ten cars use automobile glasses manufactured by Fuyao Glass Inc. It clearly demonstrates the prominent status of the enterprise in China’s automobile market. However, Fuyao only occupies about 20% market share of automobile glass globally, and half of such market share is ascribed to domestic Chinese buyers. Fuyao Glass Inc., aiming at becoming the world’s most competitive supplier of automobile glass, is far from being satisfied with its current business achievement. In order to expand its global market share and have effectual impacts upon downstream automobile manufacturers, Fuyao Glass Inc. needs to pay special attention to its distributive channels in the overseas market.This paper focuses on Fuyao Glass Inc.’s performance in the U.S. market, and it addresses the question of how it can optimize its distributive channels in the American automobile glass market. This paper first closely looks at the types of distributive channels and the methods of devising distributive such channels, and it summarizes and analyzes development of U.S. automobile glass industry and the modes and features of automobile glass’s distribution in the U.S. market. Deploying the analytical tools of PEST and SWOT, this paper systematically investigates the advantages, disadvantages, opportunities, and threats that Fuyao’s distributive channels face in the U.S. market. It reveals that the distributive channels of Fuyao’s ARG accessories tend to be singular, and it does not possess much control over the consumption of end users. In addition, it shows that Fuyao relies too much on downstream automobile industry and has little influence over the high-end market. In response to these issues, the author offers detailed suggestions on Fuyao’s reorientation in the U.S. automobile glass market and provides pragmatic programs that enable Fuyao Glass Inc. to optimize its distributive channels. In the meantime, the author introduces procedures that help Fuyao to improve its cooperation with business intermediaries, better its policy on distributive administration, and further smooth its distributive channels through incorporating the system of performance appraisal. In the long term, these suggestions will ensure that Fuyao Glass Inc. enlarges its market share in the U.S. and establishes more durable relationship with customers. They will, in other words, substantially contribute to Fuyao Glass Inc.’longstanding, stable, and healthy development in the U.S. market.