Research On Competitive Strategy Of Motorcycle Exportation In LIFAN

As an important part of Chinese foreign trade, Chinese motorcycle exportation has been ranked No.1 for many years. However, Chinese motorcycle has been put in a tight spot of “Big but not Strong” by concentrating in the low-end brand, and has no chance to make its entrance into the leading product and brand. And the root reason lies in inadequate ability on innovation, heavy homogenization, low price competition, without the superior enterprise and brand internationally. As the biggest private motorcycle manufacturer in China, LIFAN Industry(Group)Imp&Exp.Co.,Ltd. has trapped in the same circle in its motorcycle exportation with the characteristics of hard survive in competition, low end brand image, declining profit margin. Now the era of selling quantity was gone forever, searching for correct competitive strategy and implementing effective measures to realize sustainable and healthy development seems especially urgent and important.This article firstly makes a detailed analysis of the internal resources and capability of Chongqing LIFAN Industry(Group)Imp&Exp.Co.,Ltd.and then analyses the main activities of its interior value chain by adopting Michael Porter’s Value Chain Model, finding that Chongqing LIFAN Industry(Group)Imp&Exp.Co.,Ltd. has some shortcomings in its daily operation but runs smoothly in general. Meanwhile it applies RIVO frame to define exactly LIFAN Industry(Group)Imp&Exp.Co.,Ltd’s core competition lies in its highly-qualified talents, relatively stronger scientific research ability and its distributor network spreading over more than 120 countries worldwide, so its core competition is outstanding and has the interior capability to implement differential competitive strategy. Next this article makes an analysis on external environment of LIFAN motorcycle exportation from macroscopic environment, industrial environment and customers separately and find : the opportunity and risk are co existing in the macro environment of LIFAN motorcycle exportation; the industrial environment features a not high growth ratio in both market and demand, beginning to a stable competition structure and fiercer completion; and the customer prefers to seek unique value proposition, under this circumstances, only applying subdivided and differential development strategy can be effective, all this proves that LIFAN motorcycle exportation has the external opportunity to implement differential competitive strategy. It then employs SWOT Analysis by combining the foresaid internal strength and weakness as well as the external opportunity and risks and comes to the conclusion LIFAN motorcycle exportation should implement differential competitive strategy. Then it analyses the benefits and risks of applying differential competitive strategy and find its benefits outweigh its risks. It also analyse the applicability on low cost competitive strategy and focus competitive strategy, and find that under present environment neither the low cost competitive strategy nor focus competitive strategy is suitable to make LIFAN motorcycle exportation to realize its strategic target and the differential competitive strategy is the only way out. Finally this article formulates five measures in implementing differential competitive strategy: Product differentiation: establishing Slight Innovation Products Development Mode leaded by market demand; marketing differentiation: enhancing efforts in building global distributors network as well as localization; brand promoting differentiation: combining new media marketing with traditional media marketing; salary paying and control mechanism differentiation: establishing the salary paying mechanism encouraging innovation as well as establishing flexible control mechanismservice differentiation: training salesmen focusing on both hard and soft know-how, and founding after sales team providing exclusive and professional service to LIFAN motorcycle exportation;...