Study On The Competition Strategy Of DH Co.,Ltd.

Since the business model of automobile 4S shop introduced in China by the end of 90s, it had experienced fast development.When it just thrived,The ten millions investment can be recovered in the first year, which attracted a large amount of hot money in this industry. On April, 1st, 2005, Administration of Automobile Brand Sales Implementing Procedures had officially launched, after 6 years' rigid and spontaneous development, 4S shop was has gradually become the dominant model in automobile service industry. However, with expansion of capacity from various automobile brands,and the continuous enlarging of 4S network, the competition also became fiercer in market.From 2012, Many dealers starts to suffer losses, Dahua Automobile Service Company is one of them.The first lossing report of Dahua Automobile Service Company has caused high attention of investors, and whether 4S shop is worth of further investment, what profit ways are there, and how to strengthen competitive advantages is a question that is worth to analyze and study.This article took Dahua Automobile Service Company as the research object. The aim of the study is to formulate its competitive strategy to face the complex market changes at present or in the future. First, PEST tool was used to analyze and predict the current macro economy, to have an overall understanding for the economic development. Afterwards, some theories was taken that represented as the Porter's theory to analyze the relevant industry and market, from which it draws a conclusion that the automobile industry is a preponderant filed. Perform SWOT matching with the analysis of internal and external enterprise environment, thus to formulate a differentiation competitive strategy.The research significance is to effectively guide the actual operating business with the strategy scheme formulated, improving the company's performance and heightening investors' confidence.