Research On Competitive Strategy For Fu Han Automotive Component Co.,ltd.

The development of new energy vehicles have always been the focus of China’s automobile industry.In recent years,the development of China’s new energy vehicle industry has made a very rapid progress.The annual quantity of output and sales of new energy vehicles have repeatedly reached new levels,which has brought extensive attention.In September 2020,the raise of China’s objective of "carbon peak and carbon neutralization" accelerated the development of new energy vehicles in China.The object of this paper’s research is Fu Han Automotive Component Co.,Ltd.（hereinafter referred to as Fu Han Company）.Fu Han Company is a joint venture established by Hanyang Group of Korea and Fuao Group of China,in which Hanyang Group’s investment proportion is 55%,Fuao Group’s share investment proportion is45%.Hanyang Group is one of the world’s two largest vehicle thermal management products suppliers.As a Sino-Korean joint venture auto parts’ company founded in2018,after three years of efforts,it has won recognition from FAW-Volkswagen,SAIC Volkswagen,FAW-Hongqi,NIO,Volkswagen,Hyundai And Anhui Volkswagen,and has made certain achievements.However,there is a crisis behind the achievements,now Fu Han Company is facing more and more fierce competitive pressure.In this background,through the analysis and research conducted for Fu Han Company,this paper hopes to develop a competitive strategy that is suitable for Fu Han Company’s own development,hoping to help the company stand out in the competition of new energy auto parts market in the future and achieve a better development in the fierce market competition.The research of this paper includes four parts.The first part firstly expounds the research background and significance,then introduces the research content and research methods,and finally summarizes the contents of references and theoretical basis.The second part firstly introduces the development situation of Fu Han Company and the products it manufactured.Secondly,the paper puts forward some problems exposed in the current development process of Fu Han Company,including the decline of product competitiveness,customer stickiness and market share.Aiming at these problems,the paper dose the analysis from both external and internal aspects,and then finds out the root causes of the problems.The third part studies the competitive strategic environment of Fu Han Company.PEST analysis method is firstly used to analyze the external macro environment of Fu Han Company.Secondly,with the help of Porter’s five forces competition model,this paper analyzes the industrial environment of Fu Han current new energy vehicle’s air conditioning system thermal management.Then,the paper analyzes the internal environment of Fu Han Company from the two aspects including the company’s resources and capabilities.Finally,based on the opportunities and threats from external environment and the advantages and weaknesses from the internal environment,by using the SWOT analysis model,the paper matches several alternative competitive strategic schemes for Fu Han Company.Then preliminarily selects two strategic schemes that are suitable for Fu Han Company’s own development,which can provide a basis for the making of the final competitive strategy of Fu Han Company.The fourth part studies the specific content of the formulation and implementation of Fu Han Company’s competitive strategy.Firstly,according to the analysis from all aspects of Fu Han Company,this paper defines the vision and mission of Fu Han Company.Secondly,by using Porter’s basic competitive strategy theory and based on Fu Han Company’s own characteristics,this paper finally develops a competitive strategy that is suitable for Fu Han Company’s own development,which is,applying the cost leadership competitive strategy for R134 a products,which are mature in the market.Meanwhile applying the differentiation competitive strategy for R744 products,which are technologically leading in the world.Then this paper puts forward some specific contents of the implementation of competitive strategy for Fu Han Company,and at last provides several basic guarantees for Fu Han Company in order to ensure its successful implementation of competitive strategy.