Research On Competitive Strategy Of Dongfeng-Nissan Limited Company

With the progress of Chinese economy and urbanization, the disposable income ofthe people has been greatly increased. Meanwhile, the passenger car market haswitnessed an remarkable growth in the past few years. Xuchangming, director of theInformation Resources Development Department of the State Information Center,proposed that car market in China will continue to increase by12%-15%per year inthe next10-15years. With the entrance of the foreign enterprises and growth of localcar makers, the competition has become increasingly fierce. Therefore, how to seizeopportunities and expand market share has become an problem to be taken seriously.Dongfeng-Nissan Passenger Vehicle Company is a joint venture established in2003,whose stockholders are DongFeng Group and Nissan from Japan. Its products coveredthe entry-level, low-grade, and high-end family car, cross-over, urban off-road vehiclesand off-road vehicles. The joint venture has witnessed remarkable growth since itsestablishment in2003, and it is called the fastest grown company in the Chinesepassenger car market. In order to keep ahead of the industry's rate of growth, it'sneeded to establish series of scientific of competitive strategy and related measures.The paper is composed of four parts. The first part is introduction, in which Idescribe the background and the logical structure of the paper. Besides, some basictheories and latest trend of strategy management are also introduced. Secondly, I depictthe states quo of the joint venture and summaries key points of the inside and outsidecircumstances of the company. In this part, SWOT analysis is used to get the strategicportfolio which is available. In the third part, by using SPACE analysis, I conclude thatvalue enhancement strategy based on overall cost leadership and differentiationstrategy, which is composed of strategy of strong growth in both sale and profit,strategy of intense operation and strategy of renowned brand. In addition, I developsupporting strategies for product development, market expansion, humanresources, reducing costs, optimizing the organization, and capacity upgrades. In thelast part, I suggest principles and measures of implementation of the strategy.In one word, Dongfeng Nissan Passenger Vehicle Company is now enhanced itscore competitive power; to increase company's value with lower-pricing war and adiverse production mode, in order to achieve a certain profit level and meanwhileincrease its market shares.