Research On Faw-Volkswagen Product Development Strategy

Since the establishment of FAW-Volkswagen for 30 years,it has created many classic models of C hinese cars in the Chinese market,such as Jetta,which is known as "evergreen tree in the car world",Polaris,"driver’s car",and "synonymous for hatchback" Golf and other models have become household models in China.FAW-Volkswagen’s passenger car market share occupies the forefront of the domestic passenger car market.However,with the global auto industry upgrading and reform,the auto industry is developing in the direction of intelligence,new energy,and the popularity and penetration o f the sharing economy,coupled with the high maturity of the auto industry,and increased competition within the industry.Although FAW-Volkswagen still maintains growth in sales and profits due to its brand influence,the growth rate has slowed down,and its actions lag behind the market in both the traditional automobile field and the emerging new energy vehicles and smart connected cars and mobile mobility.Indicating that FAW-Volkswagen’s corporate strategy needs to be adjusted.This article sorts out the classic management theory and analysis tools of strategic management,and uses the strategic management theory as a guide to follow the process of strategic management formulation: strategic analysis,strategic selection,strategic implementation and strategic evaluation,and analyzes FAW-Volkswagen’s product strategy and adjustment.This article uses the methods of literature analysis and case analysis,combined with the basic profile of FAW-Volkswagen,and analysis of existing product strategies.It finds that FAW-Volkswagen’s existing product layout is uneven,and research and development lags behind market demand.Political factors,economic factors,social factors,and technical factors analyze the external environment of FAW-Volkswagen.Through comparative analysis of the data,the factors affecting the demand for the automobile market are the income level of residents,the average price of cars,the price of oil,and consumer preferences.Car market demand is analyzed;the five-competitive force model is used to analyze the competition of FAW-Volkswagen’s competitors,new entrant competitors,potential alternatives,the bargaining power of suppliers,and the bargaining power of buyers An analysis of the opportunities facing the automotive market,as well as the internal strengths and shortcomings of FAW-Volkswagen.Based on the above analysis,use the SWOT matrix analysis to make choices for FAW-Volkswagen’s product development strategy and determine a diversified expansion strategy: lay out traditional product lines to achieve full coverage of high-,mid-and low-end markets,full product coverage,and accelerate the introduction of SUV models;Layout the research and development and layout of new energy vehicle products;speed up the research and development and deployment of smart connected cars;enter mobile travel and provide service products.Based on the above strategic choices,formulate strategic goals: maintain brand influence,increase market share,deploy new energy vehicles,intelligent connected cars,and mobile travel.In order to ensure the realization of strategic goals,we have formulated specific measures for implementing the strategy and provided organizational guarantee,corporate culture guarantee,and human resource guarantee for t he implementation of the strategy to ensure the smooth realization of the strategy and help FAW-VW’s sustainable development.