Research On Strategy For Product Development Of Economic Brand Car In FAW-VW

After ten consecutive years of ranking first in world production and sales,China’s automobile market has undoubtedly become the largest and important market in the world,with sales exceeding the sum of the second to fourth places.Moreover,China’s market will continue to maintain the world’s first position for a long time to come.However,we should also see the stage dilemma.In 2018,China’s market sales were 28.08 million vehicles,down 5.8% from 2017,making it the first decline in sales in nearly 30 years.On the one hand,the automobile market is becoming saturated,on the other hand,the competition among domestic automobile manufacturers is increasing day by day.Foreign brands are aware of the importance of the Chinese automobile market and have brought the latest technology of our company’s best products to China to expand their share in the Chinese market.Meanwhile,self-owned brands such as Geely and Great Wall have risen rapidly in recent years.With the understanding and rapid response to the Chinese market,the share of self-owned brands has been rising,and they have begun to attack middle and high-end brands,such as the success of sales of neck brand and WEY brand.In this case,FAW Volkswagen,as one of the most successful joint venture manufacturers in China,has a clear understanding of the severity of the challenge.In order to maintain the advantages accumulated over the years,it must make breakthroughs.Faced with the existing pressure,FAW Volkswagen resolutely launched the third brand to focus on the economic automobile market,enrich the FAW Volkswagen product line,increase the overall sales volume and expand the market share.The first model of FAW-Volkswagen economic brand will be launched in June 2019,and subsequent models have begun to plan.Whether the market performance of economic brand is successful or not is very important to FAW-Volkswagen’s strategy.Through the research of FAW-Volkswagen’s economic brand product development strategy,this paper formulates and implements the strategy suitable for FAW-Volkswagen’s economic brand product development,promotes the competitiveness of new brands,and contributes to FAW-Volkswagen’s sustained market leadership.Based on the theory of strategic management and referring to the relevant theories of strategic management and related works and papers,this paper analyses the current situation and existing problems of FAW-Volkswagen’s economic brand product development,uses PEST analysis method to analyze the macro-economic,legal,social and technological factors affecting the development of economic brand products,and adopts Porter’s Five Forces Method.The industry environment is analyzed,and the internal environment of economic brand product development is analyzed,including the analysis of development resources and development capacity.The SWOT analysis model is used to analyze and discuss the advantages,disadvantages,opportunities and challenges of FAW-Volkswagen economic brand product development.Through quantitative analysis of QSPM matrix,the choice of product development strategy is made.At the same time,the implementation plan and safeguard measures for realizing FAW-Volkswagen economic brand product development strategic objectives are formulated.