XF Automobile Group Development Strategy Research

Since the year of 2010, Chinese economy is no longer continue the trend of rapid growth, the speed of Chinese economic growth is slowing. However, despite the recession of many Chinese industries, the development of the automobile industry is continuing to rise. More and more families begin to buy their second or third cars. Besides, for high-end car buying capacity increasing year by year, and the rapid of new energy vehicles’ developing, all those factors have enormous contribution to Chinese automobile industry, especially to the vehicle sales. But with the emergence of new media, the car industry’s sales profits becoming more and more transparent, channels of car purchase and maintenance being increasing, and consumers consumption psychology and consumption habit gradually maturing, the automobile industry are entering a big reshuffle times. Evolution, merger, acquisition and reorganization, market exit, and etc., have become the ’new normal’for current automobile industry development.XF Automobile Group was founded in the 1980s, the earliest is a Hong Kong’s imports company, implemented capital accumulation with the help of Hong Kong’s economic prosperity and began the development of vehicle industry in Chinese mainland market in 1990s. Benefited from booming of Chinese automobile industry, XF Automobile Group from having the first Beijing Hyundai 4S Center, to having been developed to have Korea Hyundai, Mitsubishi, Audi, Volkswagen, Lamborghini, Bentley, Porsche, Mercedes Benz, and many other high quality car brands’4SCenters. With the rapid growth in these years, XF Automobile Group has explored a way to their own development. With the aid of the high quality car brands, dimension and collectivization development pattern, XF Automobile Group has owned the ability of competition in the field of domestic car sales and become one of the largest automobile sales enterprises in Zhujiang River Delta District. However, with the development of the automobile industry entering the new normal, XF Automobile Group’s way of long term development meets new challenges as well, so that they need to have a new group development strategy planning to face the changing of new age and their enterprise management also need to combine the strategic adjustment to make changes.This paper has tried to analyze the external environment and internal condition of XF Automobile Group Co., Ltd. based on the strategic management theory and the actual situation of the company, and analysis tools such as Internal and External Factor Evaluation Matrix, Value Chain Model, the Five-Force Model, SWOT Analysis, BCG Matrix and so on, finally put forward the overall strategy of XF Automobile Group is Focused Related Diversification Development Strategy. That means XF Automobile Group will focus on the high-end customers, aim to achieve diversified development of high-end car business such as new car sales, pre-owned car evaluation and sales, after sales maintenance, and automotive related products development and sales, try to build the brand label of’One-stop Service Expert of Luxury Cars’, form a more competitive system of value chain gradually, and make every effort to develop steadily in the fierce competition condition.This paper argues that the points of XF Automobile Group development strategic security are those, firstly to enhance strategy control ability and internal coordination ability in the group level; secondly to use the advanced management concept boldly and to optimize human resources level. In addition, still should guarantee superior resources development and application, and increase its depth and width of market awareness.The innovation of this paper is to adapt to the enterprise industry development trend and relevant national policy adjustment, breaks through the conventional idea that the original 4S Centers are the car dealer groups’main profit; puts forward the conception of enterprise’s main profit in the future, which are the 2S centers based on aftersales business, unauthorized parallel import car shops, vehicle related products development and sales, etc.. At the same time, with strategic management theory, combined with the actual situation of XF Automobile Group, a practical and feasible development goals in next step has been worked out, the guiding ideology of group development has been determined, and group development direction has been accurately positioned. Finally hope the paper can guide enterprises to expand market share quickly and efficiently, and will be value to enterprises for the long-term sustainable development.