Analysis On Competitiveness Of China’s Automobile Industry By Diamond Model

Got started from 1953, the auto industry in our country has traveled 60 years Auto industry, as one of pillar industries in our country, has developed rapidly in recent years.China’s auto production and exports has topped the world for many years and become only one country of the world that hit the 20 million mark off sales China’s auto industry has made outstanding achievements,.However,compared with the countries which the auto industry is relatively developed, our auto industry still exists many problems, and international competitiveness is still very backward.How to improve the international competitiveness of China’s auto industry has become a strict problem to be solved.This article first introduces the selected topic background, research methods and thesis structure.Then it makes a introduction about the relevant theories and literature review.It mainly introduces the comparative advantage theory, value chain theory and porter diamond model and its improvement.Potter diamond model is highly summarized influencing factors on industrial competitiveness including four main aspects,which are production factor, demand factor, relevant and supporting industries, business strategy, structure and rivalry in, and two secondary factors which are the government and the opportunity. In this paper, the porter model is improved.Then this paper discusses the domestic and foreign research situation about the Automobile industry competitiveness, to lay the theoretical foundation for the full paper.Then this paper analyzed the present situation of the development of auto industry in our country. In recent years,auto industry in China has gotten great progress in all aspects, but we can see that compared relatively developed countries in the car industry, China’s auto industry still has many problem such as too little investment in R&D, low quality of the labor force, imperfect market structure, the residents’ consumption level needs to improve, foreign capital utilization mechanism is imperfect, failed to grasp the core problems of intellectual property. These problems directly or indirectly lead to the lag of industry international competitiveness of our country Automobile.Therefore, to boost the international competitiveness of China’s auto industry, we must solve the problems existing in the auto industry in our country from these aspects.Then this paper uses the factor analysis method to make an empirical analysis of the international competitiveness of China’s auto industry and the data of China’s auto industry in 2001-2011 is analyzed. Through the analysis we know that there are mainly three aspects that affect the competitiveness of China’s Automobile industry: quantity of residents’consumption level, labor productivity and the patent practitioners.Finally, this paper mainly puts forward three suggestions on China’s auto industry:Firstly, Firstly, to improve the disposable income level of urban residents, this paper puts forward proposal of improvement of the employment,increasing the production capacity of enterprises and deepening the reform of income distribution; Secondly, to improve labor productivity Automobile workers, this paper proposes the improvement the enterprise personnel system, encourage employees to participate in relevant training and education, strengthen talents incentive system recommendations; Thirdly, to strengthen the Automobile patent R&D ability, this paper mainly proposes emphasizing the patent of manpower, energy input, strengthening the importance of patent protection, protecting property rights.