Business strategies of passenger cars in China : a case study of FAW-Volkswagen Automobile Co., Ltd. | |
| Author | Lu, Haixia |
| Call Number | AIT RSPR no.SM-06-57 |
| Subject(s) | Automobile industry and trade--China Volkswagen automobiles |
| Note | A research study submitted in partial fulfillment of the requirements for the degree of Master of Business Administration |
| Publisher | Asian Institute of Technology |
| Series Statement | Research studies project report ; no. SM-06-57 |
| Abstract | China's automobile industry is developing rapidly. Especially as for passenger cars, it has accounted for a large percentage of the whole vehicle industry (more than 35% ), and is becoming a dominant sector with the relaxation of Government's policy and the enhancement of customers' purchasing power. However, how to adapt to the changing environment and survive in the intensified competition is becoming more and more critical for the automobile manufacturers. In this research, FAW-Volkswagen automobile co., ltd was taken as a case study to analyze its business strategies, the execution strategies in particular. Firstly, the whole automobile industry's evolution and microenvironment were analyzed in order to demonstrate the climate where the auto industry has grown. Secondly, the internal analysis of the company was conducted to identify its critical strategies in expanding the domestic market and enhancing the sales. Finally, based on the overview of China's auto industry and the case study, a couple of conclusions were proposed and formulated. Some recommendations were brought forth as well to the company and the Government with the aim of building necessary conditions and supports for passenger car manufactures' further develop in the new context. Through the case analysis, some key findings can be drawn as follows: Firstly, China's passenger car industry will continuously grow due to its large domestic market potential; Secondly, the competition for passenger car industry is fiercer and fiercer since not only almost all big auto manufactories are investing in China but China's independent automakers are developing quickly; Thirdly, FAW-VW's sales expansion can be attributed to its successful business strategies concerning harmonious product portfolio, large sales network, open and transparent price and so on. Fourthly, due to its tough price policy, fierce competition and cost pressure FAW-VW's market share has dropped down a lot so that it has to adjust some of its business strategies recently. Both the successful business strategies and some potential problems FA W-VW is facing will provide valuable experience and enlightenment for other passenger car manufacturers in China. |
| Year | 2006 |
| Type | Research Study Project Report (RSPR) |
| School | School of Management (SOM) |
| Department | Other Field of Studies (No Department) |
| Academic Program/FoS | Master of Business Administration (MBA) (Publication code=SM) |
| Chairperson(s) | Tang, John C.S.; |
| Examination Committee(s) | Venkatesh, Sundar ; Sununta Siengthai ; |
| Scholarship Donor(s) | Government of China ; |
| Degree | Research studies project report (M. BA.) - Asian Institute of Technology, 2006 |