The Developing Strategy For 4S Store Of Dongfeng Nissan PV Company Based On Customer Lifetime Value Theory

The Chinese automobile industry has been developing quickly in recent years, with a sale of cars ranking No.2 in the world. At the same time, the automobile sale modes are becoming more diversified, including intensive automobile trading market, specialty shop, automobile chain supermarket, automobile park, etc., among which 4S shop is the leading mode in China automobile market. Compared with other modes, 4S has both advantages and disadvantages. In a time when the price of automobiles is sliding down, ill-operated 4S shops are caught in a crisis of survival. It is high time they sought their own sustainable competitiveness.Fengshen Motor Company, the former company of Dongfeng Nissan Passenger Vehicle Company, was the first China-made saloon car company to adopt 4S mode. It was a miracle in Chinese automobile industry in that it successfully adopted the internationally advanced four-in-one marketing mode in only one step. The development of its 4S shop network went further after it jointed venture with Nissan. By the end of 2005, there were 200 Dongfeng Nissan 4S shops. Dongfeng Nissan was considered to be the company with the quickest development in Chinese automobile industry, with a total sale over 150,000 in 2005. By analyzing the profiting mode and operation situation of Dongfeng Nissan 4S shops, this article finds out there are still many problems existing in Dongfeng Nissan 4S shops in the following aspects: 1) There are still a high percentage of 4S shops losing. Most 4S shops have to wait a long time to make profit and need to improve their ability to make profit; 2) The major source of profits of 4S shops is sale. There is still a lot of possibilities to make profit for the shops haven't make good use of their advantage in after-service; 3) Dongfeng Nissan 4S shops have always made great efforts in satisfying all their customers, lacking differentiating strategy for special customers as well as specific measures for the improvement of customer profitability.To deal with the above problems and based on the theory of customer lifetime value, this article puts forward a few of new ideas and suggestions for the sustainable development for Dongfeng Nissan 4S shops.The theory of customer lifetime value is evolved from the belief that the customers shall be in the center. Since the 1960s, after many scholars drew the conclusion that a satisfied customer will be a loyal one in their researches, many enterprises have attempted to won market dominance by bringing the possible biggest satisfaction to customers. In the 1990s, with further study into the theory about customer satisfaction, it was found out that the positive relationship between...