Study Of Chery Automobile Independent Innovation Strategy

Automobile industry is known as "industrial of the industry". It is associated a high degree with other industries and it's also a capital and technology-intensive major industry of significant economies of scale. It plays an important role in a country's economic, technology and social development, as well as the country's position of all those aspects in the world. However the innovation is of great importance in the automobile industry, so the implementation of independent innovation strategy plays a big role for automobile manufacturers as well as in promoting the entire automobile industry.In this paper, a variety of research methods are used, including Case analysis, FAHP, Quantitative analysis, Statistical analysis, Comparative analysis and Literature analysis. Through the use of these methods, we hope that we can draw some useful conclusions, which could be useful to Chery as well as other domestic automobile manufacturers in decision-making.After describing the development process of Chery Automobile, this paper illustrates the background and the status of implementation of Chery's independent innovation strategy. FAHP is used in evaluating the Chery's innovation ability. The result of comprehensive evaluation by FAHP of Chery's innovation ability is 6.4053, which is between 5 and 7.It shows that Chery's innovation ability is between the general and the better level, closer to the better level. This further illustrates that there is a certain effect from the implementation of independent innovation strategy to promote innovation ability and its experience in implementing the independent innovation strategy is worth referring. However, there is still much space to improve the implementation of independent innovation strategy. So, it needs to recognize the problem and make improvements accordingly.According to the result of comprehensive evaluation by FAHP, we make a summary of their experience in the implementation of independent innovation strategy, which mainly includes the following aspects:the first is from reverse engineering to open innovation. Through linking with reverse engineering, Chery attaches importance to independent research and development; it also pays attention to the digestion and absorption of imported technology to build the core competitiveness; it tries to develop by leaps and bounds by the "technology-for-market" and aims to continuously upgrade technological capabilities; it also cooperates with domestic and foreign professional organizations to achieve the purpose of collaborative innovation. Second, Chery tries to build its brand by cost-effective products. Chery uses its self-owned brand to occupy the domestic market and international market. Its innovative and cost-effective products are fast put to the market to meet consumers' demand. The third is the corporate culture focused on continuous learning and hard work. And the last is to attract innovative talents through the incentive mechanism.At the same time, we try to find out the current problems which exist in the implementation of independent innovation strategy, such as the small profit margin, the low brand image, the unclear property rights, the shortage of capital, the hardship in going on the board, the low treatment of R & D personnel and excessive reliance on export sales. These will undoubtedly hinder Chery Automobile from the realization of the strategic objectives and further development. This paper aims to put forward some targeted countermeasures based on the problems and causes.First of all, government should play an important role in promoting automobile manufacturers'independent innovation and increase R & D efforts on common and key technologies. It also should increase government procurement of self-owned brand efforts and implement an active fiscal and financial policies to encourage automobile manufacturers; Second, Automobile Industry Association should promote automobile manufacturers'independent innovation, promote collaborative R & D among themselves, create opportunities for the industry to communicate and provide accurate information to facilitate business decision-making; Third, Chery itself should take measures such as improving the product mix, enhancing the brand image, improving the treatment of R & D personnel to solve its own problems in its implementation of independent innovation strategy. We believe these will benefit Chery in improving its market position, achieving its objectives and enhancing its profit. Finally it will be conducive to implementing the independent innovation strategy of Chery and develop a certain referential significance to other domestic automobile manufacturers.