Research On The Competitive Strategy For Hongqi New Energy Vehicle Business Of FAW Group Co., Ltd.

In recent years,global problems such as environmental degradation and energy crisis have prompted the traditional automobile industry to transform to the new energy direction,and China’s new energy vehicle industry has maintained a continuous high growth rate under the support of national policies and macro-control.However,the high cost of batteries and the high safety risk of new energy vehicles have restricted the development of the industry,and the layout of new energy vehicles by many car companies has intensified the competition in the industry.As a representative of national automobile industry,how to seize the current development opportunity,cope with the fierce market competition and transform to new energy vehicles is an important issue for Hongqi brand of FAW Group Co.,Ltd..At the beginning of 2018,FAW Group Co.,Ltd.released the new Hongqi brand strategy,and Hongqi brand stepped into a new stage of development.After 5 years of development,the sales of Hongqi brand have achieved a huge breakthrough,but the development of new energy vehicles business is slow and has seriously lagged behind the mainstream car companies.In early 2023,FAW Group Co.,Ltd.announced its global strategy for Hongqi new energy vehicles,announcing that the Hongqi brand will devote all technological innovation investment and new production capacity to the new energy vehicle business and promote the electrification of all models.Under the guidance of the group’s overall strategy,it is important to study the competitive strategy suitable for Hongqi new energy vehicle business.This paper applies theories related to corporate competitive strategy,takes Hongqi new energy vehicle business of FAW Group Co.,Ltd.as the research object,and proposes a suitable competitive strategy by using the commonly used strategic analysis and argument methods.Firstly,the author analyzes the current situation of Hongqi new energy vehicle business and find out its problems such as slow business development,low market share and insufficient R&D power,and analyzes the causes of these problems.Secondly,the author analyzes the strategic environment of Hongqi new energy vehicle business.In the external environment analysis,the macro environment is comprehensively analyzed by PEST analysis,the industry environment is analyzed by Porter’s five forces model,and then its main competitors are analyzed;in the internal environment analysis,the resources and capabilities possessed by Hongqi new energy vehicle business are sorted out,and its core competitiveness is summarized.Then,using the Boston Matrix analysis,FAW Group Co.,Ltd.should invest more resources to increase the market share of Hongqi new energy vehicle business and make it a "star business" as soon as possible to replace the traditional fuel car business,which is declining in profitability.Finally,by summarizing the opportunities and threats faced by Hongqi new energy vehicle business,sorting out its own advantages and disadvantages,and applying the SWOT analysis matrix,it is concluded that its suitable competitive strategy direction is SO growth strategy.The specific implementation measures and implementation guarantee of the competitive strategy for Hongqi new energy vehicle business are proposed.It should take the route of differentiated competition strategy,adhere to the mid-to-high-end brand positioning,build a core technology platform,launch intelligent and diversified products intensively,enrich the marketing and service channels,and improve the brand competitiveness through brand differentiation,product differentiation,service differentiation and channel differentiation.the author also ensures the implementation of the competitive strategy through organizational and institutional safeguards,human resource safeguards,technical safeguards and information safeguards.