Research On Chery Automobile Market Competition Strategy

After nearly 40 years of growth in China’s economy,the development of market economy has gradually deepened,and the process of globalization has continued to accelerate,which has promoted the steady development of China’s automobile industry.In the next few years,China’s automotive industry will continue to increase its openness.More foreign-funded automotive enterprises will enter China with mature management methods and excellent products.At present,China’s economy has entered a period of adjustment,the growth momentum has slowed down and is facing downward pressure,and the growth momentum of the automobile market has gradually slowed down.In 2018,China’s automobile sales totaled 2808060,000 vehicles,ranking first in global sales for 10 consecutive years,but declined by 2.76%year on year.This is the first time that China’s automobile market has experienced negative growth in nearly 10 years.China’s automobile market will also face more intense competition in the future,which is not only the pressure but also the driving force.Pressure is that foreign automobile companies can drive straight into China,encroach on the survival space of Chinese brands and intensify the domestic competition of local automobile enterprises;the driving force is to force local enterprises to constantly tap their own advantages and improve their innovation capabilities,so that China will become a powerful automobile country from a big automobile country.Under the open competition environment,many automobile companies in China market want to survive and achieve sustainable,healthy and stable development.They must formulate accurate development strategy and find their own position to implement it according to the future changes of the market,so as to establish their comparative competitive advantage.Based on this,the paper first describes the research background of competitive strategy and interprets the relevant strategic analysis tools.Secondly,it uses PEST model and Porter’s Five Forces Model to analyze the external environment and industry environment of Chery Automobile.Then it uses three competitive strategies to analyze and formulate Chery Automobile Market Competition Strategy,which includes cost-leading strategy,differentiation strategy and finally system.At the same time,it is pointed out that the strategy must be effectively implemented to achieve thedesired results.Therefore,we must pay attention to the safeguard measures of strategy implementation,and supervise the implementation in brand building,marketing strategy,target market positioning,combination of independent research and development and cooperative innovation.After years of development,Chery began to reach its peak from scratch,and then lost at the crossroads of transformation and development and fell like a cliff.After years of trial and error,Chery found its own advantages and achieved rapid development in China’s automotive industry.Its success is based on a combination of many factors to formulate a correct strategy and implement,which is for independent brand cars and even its own brand.The development of other industries has provided great reference significance.This paper studies the external environment and industry environment of Chery automobile in its development,and puts forward the future development strategy,hoping to provide reference ideas and methods for the strategic formulation and implementation of Chery automobile and other enterprises in the same industry.