Study On Product Strategy Of Shaolin Auto Company

With the increase of national income, the demand for transport is growing. Coach as oneof the most popular passenger transports has been rapid developed. The Urban-ruralintegration policies, promoting the rural "village to village" project vigorously; increasingfinancial subsidies for rural passenger transport provides a good opportunity for thedevelopment of passenger car industry. Shaolin Auto Company shares a middle and lowpassenger car market in Henan. With its own cost advantage and accurate market positioning,the6to8m coach occupied a huge share of the passenger car market in rural China. ShaolinAuto Company becomes fifth businesses in the domestic passenger car industry in2003.However in recent years, the company’s car sales volume has been declining. How to takeadvantage of the development opportunities of the bus industry and its own advantages,avoiding threats and weaknesses, and determining the appropriate product strategy have beenthe major problem limiting its development.The paper firstly analyzes the development of domestic passenger car industry, pointsout the existing problems in the bus industry, forecasts the development trend of China’spassenger car industry, and provides a base for the analysis of Shaolin coach. For the salesdecline in recent years, comparative analysis s the main reason of the impact of its productstrategy for its development. According to the internal and external environment and thecompetitiveness in Shaolin company, the SWOT analysis points out the opportunity, threats,strengths, and the weaknesses in Shaolin company. Meanwhile, as for its environment,taking advantage of opportunities and its advantages, avoiding disadvantages and the threats,chose the differentiated product strategy. Take the middle bus as their differentiated products;use its own market position, brand and technology advantage, to seek for the survival anddevelopment space. Shaolin Company will improve their brand influence through thedifferentiation strategies, obtain a competitive advantage, form their own core competencies,improve passenger car sales and gain more profits.It also focuses on the implementation methods and safeguards after selecting a specific product strategy. It’s not only has important practical significance for the future developmentof the Shaolin company, but also has some reference value for the choice of product strategyfor small and medium bus companies like Shaolin.