A Research Of Competition Strategy Of Diesel Engine Of Weichai Power Co.,Ltd.

Diesel engine has a sound prospective, but also competition of its market is becoming more and more intense. Weichai Power Company is facing many opportunities and threats. The key to win out essentially relies on how to set up a good products competition strategy aiming to make use of these opportunities with its favorable advantage and to avoid risk and overcome its disadvantage. The paper intends to make a systematic analysis of Weichai Company with a discussion on strategic management theory. It aims to provide a basis for scientific marketing policy decision and to offer an optimal competition strategy with assistance of macroscopic and microscopic, qualitative and quantitative discussion.Fist of all, the paper begins with an analysis and comments on Weichai Company's external environment and its status in competition, the PEST, Five Competences Model of Weichai and EFE Matrix are involved. It is pointed out that Weichai Company enjoys favorable national policy and increased interior market. But it is also hindered by competition update and potential. The related evaluation leads to a conclusion that Weichai Company is currently in an attractive market. Secondly, with the results of the experts and manager survey and the discussion under ESFT, four essential success factors are worked out, namely, research and development abilities of new product, quality control system, favorable after-sale service, brand construction and administration. Thirdly, probing into the internal environment of Weichai company with the discussion under value link theory, core competition theory, essential success factors theory and internal factors evaluation matrix, this paper believes that Weichai company has a favorableresearch and development abilities of new product, quality control system, favorable after-sale service but it also faces disadvantages in product structure, producing scale and cost control. It is Weichai Company is in a favorable position with an overall consideration. In order to discuss the product strategy suggested for Weichai, SWOT model is constructed, qualitative analysis and the discussion of QSPM model leads to a suggestions that Weichai 's diesel engine product competition strategy should be products development. Lastly, as for its implementation, weichai company is advised to take the following five suggestions: to construct main marketing concept, endeavor in technological innovation and development continually, promote cost control competence, consummate quality control system persistently, set up a humanized organization that is ready to learn. This paper is supposed to be valuable for reference as to Weichai diesel engine marketing as well as to the drafting of competition strategy by China's diesel engine company.