Research On The Vehicle Software Business Development Strategy For China FAW Group Company

Automotive products are set to undergo a major transformation as the need for energy change,connected functionality and intelligence increases.From a mechanical product that can only provide the function of location movement,the vehicle will gradually transform into a mobile electronic product that can provide more intelligent functions."Software Defined Vehicles" will become the new development trend of the automotive industry,and automotive software will become the key core of future automotive product differentiation.All major global OEMs have recognized the trend of software-defined vehicles and released their automotive software strategies.FAW Group,which is studied in this paper,is one of the first automotive companies in China to develop automotive software business,and has been deeply involved in automotive software for many years and invested huge resources.Despite its rapid growth,automotive software business faces several challenges that hinder its development.These include lack of clarity on strategic direction,low quality of software products,mismatch with customer requirements,and unstable product supply chain.After a century of development in the automotive industry,the competition between major vehicle brands has reached a white-hot state.How to win in this new competitive track of "automotive software" is a problem that FAW Group needs to solve urgently.This paper summarizes the current situation of FAW Group’s automotive software business and analyses the underlying causes of the problems in the development of FAW Group’s automotive software business based on the current problems in the company’s operation.On this basis,the PEST analysis method is applied to clarify that China is vigorously promoting the innovation and development of the automotive industry,and with economic development,people’s living standards further improve,consumers’ demand for experience is increasing,and automotive software will be a brand new growth pole to pull the automotive experience up.Although FAW Group has sufficient human and financial resources and has certain advantages in R&D and operation,there are shortcomings in the automotive software business such as an imperfect system,lack of talents in integrating software and automotive knowledge,and limitations in the automotive electrical hardware base.In the SWOT matrix,we can analyze that FAW Group’s automotive software business development opportunities outweigh the threats,but the disadvantages are more influential than the advantages,and we should choose the WO reversal strategy.Combining the current operating conditions of FAW Group’s automotive software business and the WO turnaround strategy,it is determined that FAW Group’s automotive software business should adopt an intensive growth strategy,increase the market share of FAW’s intelligent automotive products,and build a turnaround strategy for FAW’s automotive software ecology by leveraging the current wave of development in the automotive software industry.By bringing together the group’s combined efforts,the trend of FAW’s current lack of competitiveness in software products will be reversed by means of technological innovation,quality improvement and product promotion.FAW Group will focus on automotive software platform,realize the generalization of automotive software,establish an ecological model of software in product,development and business,become an industry technology leader and fully transform into an automotive software-led travel service company.