Research Into The Decision-making On The Car Industry Analysis Methods

Along with the upgrading of people's living standard in the 21st century, the automobile market in China, especially the car market, has enjoyed a rapid growth. Indeed, during the year 2002 and 2003, the car market was mounting up at full blast of a rate from 50% to 80% .Rapidly expanding of automobile market in China catches the eye of automobile manufacturers all over the world. By the day, the nine multinational automobile giants---which form the "6+3" frame of world automobile industry---has been already in China's market, and together with the three great inner automobile manufacturers ---FAW(the First Automobile Works in ChangChun), SAW (the Second Automobile Works in WuHan) and SAC(Shanghai Automobile Corporation)---make up of the main part of the "6+3 "structure of the national automobile industry . At the same time, the high increasing rate and considerable profit rate of the inner auto market also attracts the company from other industries to prepare for the entry in various ways.However, the year 2004 witnesses a change. The blasting growth is slowing down to be at a rate about 20%, and mean while competition is becoming more and more keen, all this indicates that our automobile market is walking into the maturity stage from the development stage.Under this background, here brings the question that, while the whole industry moving into the maturity state, whether the former investment decision, should be implemented continually? and can new players still enter this industry? After a think process from theory to the fact, the author argues that the analyze to present car market in China should consider three aspects: macro-environment, consumer demands and competing state. While there should explore the interactions between many factors in study of competing state, it is key to select a comprehensive model. Here select Michael Porter's FIVE-FOECE model for its offering a better way to study interaction between factors in the auto Industry.From the point of the view of the makers trying to enter into the auto industry, with Michael Porter's "5S" model as the basic theory , the paper here makes an analysis of the data collected from the auto and auto-related industries hoping to discover the dominating force that impacts the industry structure and foretell it's moving trend and finally, to gain the researching experience about how to make an strategy analysis of a company to enter into a new industry .