C, The Company's Operating Loss Cause Analysis And Countermeasures

The C company is a well-known domestic enterprise which produces and sales cars. It's a Chinese and Foreign joint venture, which established in 1992.It is one of the three greatest enterprises which the national monopoly cars production company in last century. For more than ten years, the market share of C company fell continuously.In 2004, the share of the the C company at local automobile market is only 4%, and lost in RMB 6.2,300,000,000 (according to the statistics of nation statisticsed bureau, another an edition is lossed in RMB 985,000,000). In 2005, the C company lossed in RMB 336,000,000.(matched 38,000,000 euros about).While Shanghai general motors guangzhou honda Beijing-hyundai exceeded the C company in the scale at the same time, even native brand of Cherry Geely DongFeng-Nissnan was stronger than it on the production & sales . As a main automobile business enterprise which our country invested with a large sum of money, the problem of the C company, have the very strong reality instruction meaning, deserve everyone introspect together with the research, also providing a classic research case example for us.What's the reason? how can the company change the current situation? That is the purpose of this paper. And proposed some suggestionThe paper did an industry and competitive analysis using Five Forces Model of Competition and PEST based on Michael Porter's Competitive Advantage (forces) Theory. It evaluated the company's external competitive environment. And also analyzed bargaining power of the consumers, competition from substitute products, competitive threat from potential entrants, raw material price increasement. Then drew a conclusion of the external opportunity and threats. Based on the above analyses, and SWOT analysis to decide the option competitive statigies.This paper analyzed the company's internal environment from production and pricing strategies, human resource, corporation culture. Then made use of internal factor evaluation matrix to carry on quantitative analysis.The outstanding problem of the C...