Core Competence Promotion Strategy Research Of The Automotive Business Of A Company

With the rapid development of Chinese automotive industry,Chinese own brands play an increasingly important role in the competition.There is a long time for the improvement of the core competence in the process of development.Meanwhile,the capability of the Chinese enterprises is very uneven,which result that the Chinese brand of vehicles and parts enterprises is always at a disadvantage during the competition against the foreign brands.A company is a Chinese listed company in Shanghai stock market,whose rubber vibration business is in a leading position in the domestic market.Based on the diversification strategy,Q Division of A company started the automotive parts business.While in the process of the market developments,due to incorrect initial understanding of the industry,market positioning and the cultivation of core competence,A company encountered a great challenge.Based on the development of automotive OEM and parts industry in China,the paper analyzes the development process and current situation of auto parts of Q BU of Company A,then analyzes the market and financial performance of its different product lines.The paper puts forward that the core competence is the main reason leading to the poor situation overall.On the basis of this,based on the view of corecompetence integration of resources,aiming at the five dimensions of its core competitiveness which are strategic positioning,market development.Manufacturing capabilities,product development and cultural synergy.Then strategic management theory,STP market segmentation theory,business combination theory and SWOT analysis method was applied to find the solution to problems.Finally,the strategic guidance of “do the addition and subtraction,multiplication and division,one year loss reduction,two years transition,three years advanced” was put forward to enhance their core competitiveness.The purpose of the paper is to find out a strategy and a way to realize that how to enhance the core competence of enterprises based on the perspective of strategic management and system integration.