To Explore The Way Out Of The Predicament Of The State-owned Tire Companies - To Establish A Competitive Advantage Marketing Channels

For tens of years?development, China has become one of the largest countries of tyre manufacturing and consuming in the world. And the annual tyre production volume in China is more than 100 million pieces, which is about 1/10 of the world production. And now China export~ about 25 million pieces of tyre each year. But in fact, the industry has already got into difficulties. She has not been able to make any new type of tyre, which represents the advanced production level and trend in the industry. More than half of the state owned large and medium-sized en(erprises, the main part of the industry, have suffered a loss, and the rest is just around the balance point. The reason of the present difficulties, are not only external environmental elements but also internal problems, especially managerial problems in business administration. The only result of the market competition is that the winner survives and the loser withdraws. If these enterprises could change their strategies, and pay more attention to business management, it is possible to break away from the present difficulties. The writer analyzed 5 forces of tyre industry according to Mr. Michael E. Porter抯 theory. Through the analysis of the superficial phenomenon, the writer has identified the key problem is that the enterprises?strategy is 搃n the middle? The solution identified by the writer is that they must set up differentiated competitive advantages. Another finding of this dissertation is that the marketing channel has long been ignored by the enterprises in the industry. Through analysis of the present marketing channel and its problem~, the writer states that because the enterprises have not paid sufficient attention to the special attributes of tyre?consumer goods, their marketing channels have bad many problems. The replacement market has become the main source of sales and profits of tyre manufacturer. The dissertation fo鑥ses on this part of market and discusses how to set up a model of marketing channel with competitive advantages. Through theoretical discussion and case analysis, the writer identifies the way that the enterprises set up the channel. The writer also discusses how to develop the advantages of the channel, sLlch as non-price competitive strategies, channel promotion, physical transportation, conflict and cooperation channel apprising, channel sharing and e-commerce. The writer suggests the enterprises choose suitable functions to strength the marketing advantages according to their own characteristics. The writer of this dissertation is the fist person who applies the theory of competitive analysis and competitive advantages to this specific industry of tyre, to get the key reason of difficulties of the industry and provide a solution to solve the problems.