Research On The Development Strategy For New Energy Business Of FAW-VW Automobile Co.,Ltd

In recent years,the automotive industry is undergoing rapid changes,and the new four technologies of "electrification,intelligence,networking and sharing" are changing from planning to reality on a large scale.As the first and the other three important drivers,"electrification" is profoundly shaping the entire Chinese passenger car market,and is also the core point that auto companies must focus on when considering survival and development issues.Foreign brands such as Mazda and Suzuki,which used to occupy a place in the Chinese passenger car market,are either declining or forced to withdraw from the Chinese market because of the slow transition to electrification;in contrast,BYD,a once weak Chinese brand,became the annual sales champion of the Chinese passenger car market in 2022.After 30 years of development,FAW-Volkswagen has reached a production and sales scale of 2 million units.Although it lost the top position to BYD in 2022 with a narrow retail sales gap of more than 20,000 units,it is still a force to be reckoned with in the entire Chinese passenger car market.In this wave of change,FAW-Volkswagen needs to grasp the industry trend,find its own development position in the new energy business,make full use of shareholders and its own resources,and build FAW-Volkswagen’s core competitiveness in this new business area.This paper applies the knowledge of corporate strategic management theory,the literature analysis method and case study method,and the PEST tool to analyze the macro environment,and at the same time,analyze the industrial environment and the development trend of new energy vehicles in detail,so as to determine the strategic direction of the new energy business and propose the strategic planning and implementation guarantee mechanism of FAW-Volkswagen’s new energy business development.This paper takes FAW-Volkswagen’s new energy business as the research object.Firstly,the research background,significance,content and methodology of this paper are explained in the light of the development trend of new energy vehicles.Secondly,the problems of FAW-Volkswagen’s new energy business development are analyzed:unclear top-level development strategy,insufficient product power to adapt to the Chinese market,insufficient experience in direct customer operation,insufficient internal organizational synergy,and unclear sustainable business model,and the causes of the above problems are systematically analyzed.Then,we analyzed the external environment and industrial trends facing FAW-Volkswagen’s new energy business using PEST,and analyzed the competitive situation facing FAW-Volkswagen’s new energy business using Porter’s five forces model.The internal environment of FAW-Volkswagen’s new energy business was analyzed from the perspectives of resources and capabilities.The internal strengths,weaknesses,and external opportunities and threats of FAW-Volkswagen’s new energy business are analyzed using the SWOT analysis method.Finally,considering all factors,externally,policy support,rapid development of new energy technology,and strong consumer demand provide strong conditions for FAW-Volkswagen’s new energy development.Internally,FAW-Volkswagen’s poor profitability,lack of product power,slow product development,and lack of independent R&D capability are the core bottlenecks limiting the development of the company’s new energy business,which must be focused on overcoming and making up for.Therefore,FAW-Volkswagen chooses the turnaround strategy to cultivate new core competitiveness by capturing the industry development trend,making up for its own shortcomings,and building a new energy ecosystem by providing quality new energy experience and services to customers.Finally,around the turnaround strategy,FAW-Volkswagen formulated the medium and long-term development goals for the development of new energy business,proposed the product strategy,integration strategy,and independent operation strategy,and elaborated the guarantee measures for the implementation of the strategy from the perspective of strategic consensus,financial guarantee,and personnel guarantee.Through the study of FAW-Volkswagen’s new energy business development status and strategy,the company’s new energy business development plan is planned rationally under the new industrial development trend to achieve the company’s continued leadership in the industry and to serve as a reference for other similar enterprises.