The Research On The Strategy Of Sokon New Energy Automobile Business

In China mini auto and automobile parts industry,Chongqing XK company is always in well-developing situation,and realize 200,000 units annual production&sales from year 2010.Chongqing XK company is a manufacturing enterprise contains the production and sales of vehicle,vehicle engine and auto parts.Whose production value exceeds 10 billion Yuan.The products has been sold to more than 50 countries and regions in the world,which ranks Top 5 in Chinese mini auto industry.Energy resources and vehicles are the power of model civilization,relying on each other and supporting each other.Vehicles,one of symbols of human civilization,benefit future generations.However,the "energy crisis" becomes a big problem for our earth.In this thesis,in order to present valuable suggestions to Chongqing XK's New Energy strategy,the author picks "Research on New Energy Vehicle Business Strategy of Chongqing XK "as the topic,through the strategic management theory and analysis tool,willing to optmize business portfolio,promote automobile branch competitiveness and realize sustainable development.This thesis is expanded in parts as follows:Firstly,it refers to lots of materials related to new energy vehicles.Secondly,the author analyzes Chongqing XK internal and external environment and vehicle business integration by the analysis of global auto industry current status and using the strategic management theory,especially Five Force Model,External Factor Evaluation,Internal Factor Evaluation,BCG matrix,SWOT ect.Thirdly,by presenting Mission&Vision,strategic planning,new energy business target to do Strategy Selection Analysis further,the author makes a clear strategy mentality and a final development model for Chongqing XK's new energy business.In this thesis,there are totally seven chapters related to asking questions,questions analysis,solutions to questions,solution feasibility,and completed logic structure.Chapter One is the introduction.The author briefly introduces background information,target,theory basis,main tools and logic structure of the thesis.In Chapter Two "Analysis of Global Auto Industry Current Status",the author realizes that the new energy vehicle industry is developing fast in developed countries,while in China it is quite slow in movement.As for the industry policy and necessary technologies,it is not favorable for business development.Because of these,there are many problems in new energy vehicle business industrialization,such as:1,lack of core technology;2,fuzziness in strategy;3,disunity in tteh echnical standard;4,incompletion in the infrastructure for new energy vehicle;5,incompletion in government policies.In the combination with practical situation in the company,the author has some suggestions to China's new energy vehicle industry:1,give a clear outline for new energy vehicle strategy;2,improve level for technology innovation and R&D.3,unify technical standards and complete testing standards and methods;4,speed up new energy related infrastructures construction;5,introduce favorable and supporting policies for new energy development.In Chapter Three "Analysis on Chongqing XK's business environment",by analyzing Chongqing XK's external environment through macroeconomics,industrial policies,market competition,technology and development environment,the author finds the chance for Chongqing XK as follows:1,fuel crisis;2,the need for low emission and environmental protection;3,the transformation of China's current economic development mode;4,the encouragement of policies introduced;5,the increased vehicle demands because of economic growth;6,the increasing needs of importation in developing countries.Meanwhile the threats are:1,increasing costs on materials,labor and R&D;2,political instability for main exporting market;3,RMB's appreciation;4,vicious competition;5,limitation of licence plate in major cities;6,immaturity for new energy commercializationAll in all,chances are more than threats and we need to catch them to upgrade our products and develop new energy industry.As for Chongqing XK,there are following advantages through analysis on HR,financial resource,equipment,R&D,production capacity and sales capability:1,a big volume in production and sales;2,completed sales network;3,competitive R&D capability,4,strong financial strength;5,strong production and management team.The disadvantages are:1,weak in R&D ability of new energy type vehicle;2,lack of experience in new energy vehicle production;3,short on professional staffIn Chapter Four "Chongqing XK's Business Prtfolio",the author classifies different types for products and provides strategy selection basis.The conclusions are:1,the star products of the company are new energy vehicle and diesel powertrain;2.the Cash Cow is the middle and high-end mini-auto product as well as the new type gasoline engine;3,the weak products are low-in mini-autos and automobile components.In Chapter Five "The Strategic Plan for CHONGQING XK New Energy Automobile Business Strategy",the author makes clear explanations as follows:The prospect of the company:to be the leader in the small vehicles industry,and be a member of top enterprises of China New Energy Automobiles.The missions:to provide families and individuals with safer and more comfortable and mobile space and help to realize the healthy living environment.Theefore,'Green Life' is taking as the core subject by CHONGQING XK.CHONGQING XK is striving for making the strategy of new energy automobiles come true.The General strategy:to integrate the resources and allocate into the manufacture of automobiles,engines,spare parts and new energy batteries,and realize the strategy of vertical integration through more professional,more proficient and more powerful ways.Through the demonstration and analysis of the above four parts,the strategic concepts of CHONGQING XK new energy automobiles are as follows:actively grasping the external opportunities,positively managing the challenges,taking advantages of the internal resources and exploring the potentiality,utilizing the external resources to build up a professional new energy automobile company,making and implementing a scientific business strategy planning.,building and cultivating a well-educated,high-qualified and capable R&D team of new energy automobile.The company must insist on independent R&D,and grasp the core technology of new energy,meanwhile,expand the business to traditional vehicle electric system,equip with R&D capability and manufacturing capability and also the core technology of three main parts,launch the production of new energy automobiles with high cost performance as early as possible to enter the said market,push forward the promotion through the existing outstanding sales channels and explore more channels to gradually improve its market share.Development Strategy Pattern:to build up the priority brand of CHONGQING XK new energy automobiles by grasping opportunities and persisting in innovation,establishing specialized systematic manufacturing platform,strengthening the promotion of marketing,and steadily developing the new energy automobile business.Competitive Strategy:to follow the "differentiation strategy" and cost-first strategy.In Chapter Six "Implementation and Control for Chongqing XK New Energy Vehicle Business Strategy",the author proposes suggestions on management,resource guarantee(HR,material and financial side),technology innovation,incentive mechanism,process control(R&D production and sales),and risk controlChapter Seven"Conclusion"Main achievement in the thesis:1.At the first time,the author systematically analyzes the internal&extemal envirornment factors around Chongqing XK and makes the chances and threats clear.2.The author makes clear the development strategy:to form a new Chongqing XK brand by improving professional teams for new energy vehicle,promoting self R&D capability,creating independent and professional production platform,and strengthening marketing.3.The author provides constructive advice for Chongqing XK's New Energy Vehicle business.