Research On The Competition Strategy Of FAW Volkswagen Economic Passenger Car Business

Since the establishment of the first joint venture automobile enterprise in 1985,along with the economic boom brought by reform and opening up,the automobile industry has developed rapidly in China,from "luxury goods" that only a few people can possess to ordinary people's homes.Nowadays,China's automobile market has reached more than 22 million vehicles,ranking first in the world,and automobile brands such as Baihua are in full swing.In this situation,FAW-Volkswagen,as the leading brand in China's automobile industry,needs to enrich the product structure if it wants to further improve its market share and product coverage.It needs not only high-end popular brands and Audi brands,but also in the market.There is also a place for entry-level car products.Therefore,FAW-Volkswagen,after fully analyzing the market environment and consumer psychology,intends to launch its own economic passenger car product in 2019.This economic product retains the German technology manufacturing of Volkswagen for a long time.At the same time,the pricing is very affordable.It can be said that the quality of imported cars can be obtained at the price of purchasing domestic cars,which is independent for the main players in the market at present.Brand is undoubtedly a huge challenge.In fact,for FAW-Volkswagen,the same unprecedented situation,with strong endorsement of German technology,and relying on the support of FAW Group's central enterprises,FAW-Volkswagen has been accustomed to the operation of the high-end market,suddenly to enter the economic market,and how to quickly seize market share? How to achieve rapid profit in the current economic environment? This is the focus of this paper.In this paper,through the tools of Porter's Five Forces Model,SWOT Analysis and PEST Model,the internal and external environment of FAW-Volkswagen will be analyzed,the advantages and disadvantages of FAW-Volkswagen will be explored in detail,and the competition strategy of FAW-Volkswagen economic products will be formulated through research.The main focus of this paper is to use existing mature production lines to "fine-tune" to reduce development costs,combining with today's FAW-Volkswagen.The tide of "four modernizations"(intellectualization,electrification,networking and sharing)of automobiles,through the analysis of the environment and industry of FAW-Volkswagen's economic products,and combining the advantages,disadvantages,opportunities and challenges of the enterprise itself,formulates a reasonable differentiation strategy.For FAW-Volkswagen's economic products,it mainly puts forward corresponding strategies according to the problems existing in the fierce competitive environment,namely,product differentiation,sales channel differentiation,and sales process differentiation.Among them,product differentiation is mainly to abandon the fancy and inappropriate configuration,retain and develop the most practical and intelligent configuration to meet the real needs of consumers.And conform to the mainstream trend of the country: environmental protection,energy saving,intelligent,in the new energy technology and intelligent technology.Marketing channel differentiation is mainly to develop online channels,assistant offline sales,thus saving a lot of human resources costs,and bring customers a new consumption experience.Sales process differentiation is reflected in many aspects,from the existing process links to find breakthroughs,focusing on order trading and after-sales service,pay attention to online channels,pay attention to customer satisfaction.From the beginning of listing,we have established the impression of young intelligent customers with high performance-price ratio,and further optimized the lean system framework to achieve "one post,multi-abilities" and create a new lean,efficient and fast operation management system.Under the good system operation,FAW-Volkswagen's brand-new economic products will shine brilliantly in the Chinese market with its super high cost performance ratio and excellent image of enterprises in the past decades by adopting the strategy of differential competition.