Strategic Analysis Of Technology Innovation Of SGMW

In the mini auto market in China,SAIC-GM-Wuling Automobile Stock Co.,Ltd.plays an important role,taking up more than 50%market share,far ahead of the industry.The predecessor of SAIC-GM-Wuling Automobile Stock Co.,Ltd.(hereinafter referred as SGMW)is Liuzhou Wuling Automobile Co.,Ltd.,which was established in 1996,a local state-owned enterprise,whose main business covers mini autos and engines.Before 2002,Wuling lagged behind competitors such as Chang'an,Hafei and other mini auto companies.But in 2002,through asset restructure and deepening reform,Wuling Group,GM and GM in USA developed the CCF "tripartite cooperation",and established the SGMW,promoting the rapid development of the Wuling.SGMW produced and sold 1.35 million mini autos in 2012.Through reviewing advanced experience and lessons of the implementation of technological innovation strategy of foreign auto companies,this paper describes the sources of corporate strategy,connotation and characteristics,as well as definition,characteristics and the main content of enterprise technology innovation strategy,expounds four modes of China's auto enterprises innovation.First,cooperate with foreign enterprises,then introduce their experience,absorb and make innovation.Second,upgrade from fully mimic to innovation with domestic-driven.Third,take the initiative to actively utilize global resources.Fourth,joint auto companies introduce the products and then make a local design and improvement.They can carry out local research and development with global technology platform.Take South Korea,Japan,Brazil and Mexico auto companies as cases study to illustrate advanced experience from the implementation of technology innovation strategy of foreign automotive companies.In short,strategy of technological innovation is mainly to solve the fundamental principles,objectives and main planning of technological innovations,which have an overall,long-term and direct influence.The strategy of technological innovation decides the specific acts of innovation and therefore the classification of strategy of technical innovation is the primary condition to correctly choose a new strategy.Technology innovation is an important part of the core competitiveness of enterprises.By analyzing Japan and other independent brands of automobile companies'successful models,and independent innovation and innovational lessons of Brazil,Mexico,new consideration of Chinese independent brand for independent innovation is inspired.From the basic situation and the use of PEST,Porter five forces model,Porter Value Chain,SWOT,BCG matrix,etc.,this paper explains the results of operations and the status of the industry,and then analyzes the internal and external environment which SGMW is facing.This paper analyzes SGMW Company's strategic intent and achievement situation of its strategic goal in 2007.The company's aim is to be the leader in domestic mini and small automotive sector,and internationally competitive car company.Strategic goals before 2010were:took up more than 35%market shares of mini-commercial vehicles,more than 20%market shares of mini passenger cars and small low-end passenger car.Besides,it had export sales amount to more than 10%of total sales and created leading model BOE and become a model company of operating GMS mini and small autos.By analyzing the achievement of company's strategic objectives to illustrate the company's 12th five-year planning.SGMW Company wants to achieve production capacity of 2 million at the end of 12th five-year and completes the third base in Chongqing,makes brand of Baojun cover A,A0,A00-level market and develops SUV,MPV and other passenger cars.The paper analyzes technical innovation strategy of SGMW in details,sums up the history of technological innovation in three stages:the first stage(1982?1996):imitation + technology introduction;second stage,the initial stage of independent research and development(1997-2002);the third stage,be self-centered,make independent research and development of self brand(2003-2013).In the third stage,after deeply studing the mini auto industry and the needs of customers,SGMW optimized original ideas of "low cost,simplicity' to" low-cost,high-value " manufacturing model and upgraded it to be the corporate philosophy:on the one hand,all departments strictly followed SGMW-GMS operator element positively to eliminate waste from all aspects and reduce costs;Meanwhile,SGWM company insisted on creating value for customers."Listening to customers,integrating internal and external resources,continuous quality improvement,exceed customer expectations "to create excellent quality products.SGMW Company insisted on "keep own brand in joint venture,make independent research and be innovative",and introduced shareholder advantage,digested,absorbed,then re-integrated it.Self developed N300(Rongguang)and CN100(Hongguang)were welcomed by the market.Through the development path of imitation,introduction,digestion and absorption,cooperation,joint ventures,integrated innovation,SGMW Company gets its own unique capability of independent innovation,mastered survival skills of development and growth and becomes the epitome of Chinese micro-car success.The technology innovation and strategic position of SGWM company are:low cost,high value,development model of " self development with integration of all advantages of resources";cooperation strategy is special industry-university-research cooperation and strategic alliances in the form of joint special which successfully introduced GM's global development process GVDP and help maintain the industry-leading technology innovation management level.This paper also describes the capability of independent innovation and strategy of enterprise development,innovation strategy of production system.From the idea of keeping own brands in joint venture,be self-centered and focusing on products life cycle,this paper explains the reason why the process management level of technical innovation can keep leading in the industry and the success of the SAIC-GM-Wuling company's technology innovation strategy.The technology innovation goals of SGWM are:platform strategy of mini autos:"million platforms,differentiated platforms.As for passenger cars,Baojun brand will cover A,A0,A00-level market.SUV,MPV and other passenger cars are to be developed.Finally,this paper analyzes the referential significance and the potential problems of SGMW Company's strategy of technology innovation.Innovation of the paper:this paper summarizes the history of independent innovation,and defines strategy models of independent innovation and strategies characteristics.There is a certain significance of counterparts for auto companies to create independent innovation system.Besides,this paper uses the technological innovation theory and theory of enterprise competition to analyze and research the SGMW Company's capability of independent innovation.On the basis of the theory of enterprise strategy,it analyzes,studies internal and external environment of SGMW,and use the comparative analysis methods,SWOT,BCG matrix,PEST,Porter's five forces model,Porter value chain model and other tools.And last,this paper,from the microscopic view,analyzes the potential problems of SGMW's innovation.