Research On The Used Car Development Strategy For FAW Hongqi Automobile Sales Co.Ltd

With the continuous development of the national economy,the number of car ownership in China has increased rapidly.At the same time,the production capacity of the OEM was gradually released,and the sales of new vehicles have transferred from the seller's market to the buyer's market,and the profit has declined seriously.With the consumption of upgrade,the used-car market is getting increased attention.The huge market potential attracts major manufacturers to speed up the layout of used-car business.In order to seize the market opportunities,FAW Hongqi Automobile Sales Co.Ltd.(referred to as "FAW Hongqi")began to develop used-car business in 2016.The main purpose is to promote the sales of new cars,to improve the preservation rate of the cars,to enhance the post-market value chain of the cars,and to promote the user's loyalty of the brand.However,since the development of the business,FAW Hongqi has only carried out the replacement business and the repurchase business of the cars.That means the business type is single and the development speed is slow.According to change of the market environment,FAW Hongqi badly needs to break the bottleneck period of development,and adjust the development strategy of Hongqi used-car business.This paper analyzes the development experience of the used-car market at home and abroad,and draws on the research results related to strategy and operation management,combining the used-car business development of FAW Hongqi.Through combing theory and practice,and using the various tools such as PEST analysis and SWOT analysis,it can develop a reasonable short-term action plan and long-term development strategy for the used-car business development of FAW Hongqi.The article is divided into 4 chapters,the main contents are as follows:The first chapter is the introduction part,which mainly expounds the research background and significance,research methods and contents,applied theory,reference literature.This chapter leads the full text and sets the groundwork for the following.The second chapter mainly introduces the company and objectively evaluates the development status of the company's current used-car business.Through self-evaluation and comparison with the industry,it discovers the problems of the company and analyzes the causes of the problems,so that the following strategies can be implemented.The third chapter mainly analyzes the external environment and the internal environment of FAW Hongqi used-car business.It sorts out the advantages,disadvantages,opportunities and threats through SWOT analysis,thereby avoiding business risks and identifying market opportunities.It sets the foundation for the choice of the following development strategy.The fourth chapter is about the goals to be achieved by FAW Hongqi used-car business development strategy,what kind of development strategy should be chosen,how to implement the strategy and what safeguard measures are in place,and strive to improve the short-term and adapt to local conditions,so that the used-car business can support FAW Hongqi Automobile Post-market value chain development layout.Through analysis,the internal advantages of FAW Hongqi outweigh the disadvantages,and external opportunities are greater than threats.Therefore,the company should adopt an “investment/growth” strategy,in order to increase resource input,and expand its business scale.This paper is based on the five fields of used-car replacement,retail,profit,marketing and team building,expounding many strategic ideas to promote business development.At the same time,this paper put forward the specific measures to protect the implementation of the strategy.