The Competition Strategy Research Of GAC Company

GAC company is a wholly-owned subsidiary of Guangzhou Automobile Group Co.,Ltd..Adhering to independent innovation and positive research and development,GAC has successfully entered the high-end market,and seized the strategic opportunity of the explosive development of SUV in the Chinese automobile market.Its sales volume has rapidly increased from 17,000 in 2011 to 508,600 in 2017.However,since the beginning of 2018,the overall growth rate of China's auto market has declined,with regulatory changes,such as Chinese government will cut the tariffs it charges on imported cars,implement CHINA stage-6 emission legislation,the requirements of CAFC&NEV credit policy.Meanwhile,some major competitors,like Geely,Great Wall Motor,launched their luxury brand Link&Co,Wey.Market competition has further intensified,and GAC's growth slowed.In addition,in the past ten years of development,GAC has had uneven development of models and a small number of popular models.As a new force of China's self-owned brands,GAC needs to evaluate its own business environment and develop appropriate competitive strategies to ensure its survival and development in the fierce market competition so as to achieve sustainable performance growth.This paper expounds the research contents,methods and ideas,and points out the necessity of making strategy for GAC company.Then,analyses GAC company's external environment and basic information of main competitors,using PEST analysis and Porter's Five-Forces analysis.It comes out that there are six opportunities for GAC company.Firstly,China's automobile demand will continue to grow.Secondly,“the Belt and Road Initiative” stimulates automobile export volumes,then,policy support of new energy vehicles poses a dramatic impact on the development of the new energy vehicle market.Furthermore,the mid and high-end market became a battlefield for brands of all levels,as the major consumers of this market are the younger generation with personalized demands.On the other hand,official vehicle reform is good for the independent brand cars.Finally,the policy of cars to the countryside and second-hand car replacement bring new demands.From internal environment analysis,GAC company has four major advantages,including talented team,SUV models launch and product quality,supply chain and brand competitiveness.By conducting a SWOT analysis,which will represents key insights into the balance of opportunities and threats,advantages and disadvantages,GAC's marketing strategies and position can be defined,so as to meet the headquarters' expectations.This paper points out that GAC should target at the middle and high end market,adopt differentiation strategy and to maintain the relative superiority of products quality.Analyze value chain analysis and design differential activities,and make specific countermeasures in product planning and marketing.With the support of GAC Group,GAC company will try its best to build a first-class talented team,improve the organization structure,optimize product planning,promote distribution channels,realize the overall quality improvement,strengthen the enterprise culture construction of “pursuing greatness”,optimize resource allocation & integration and motivate mechanism.In order to build GAC company as China's most influential high-end independent brands,at the same time,achieve its "world-class brands,global enterprise" vision.