The Reaserch Of B Automobile Group Low-cost Strategy

Low cost strategy is of vital importance for enterprises to gain competitive advantages.With the continuous development of market economy,unprecedented changes have taken place in the business environment of enterprise and their development strategy has changed from finishing production tasks to serving the society and achieving long-term stability.As a pillar industry related to the national economy and people’s livelihood,automobile manufacturing has made great contribution to the development of our national economy in recent years,but in the increasingly fierce market competition,there is no strong growth of sales in automobiles industry as before.In order to enable automobile companies to obtain more significant competitive advantages and promote their transformation and upgrading,this paper takes the low cost strategy implemented by B Automobile Group’s own brand--M company and joint venture brand H company as an example,discusses the ways for automobile companies to seek development and make them more competitive.First of all,this paper uses the method of "five forces model" and "value chain" to study basic theories like low-cost strategy,value chain management and other basic theories through extensive looking up to literature,and sorts out low-cost strategies of main brands like Geely Automobile,Chang"an Automobile,Volkswagen,Toyota Motor.And through comparing the implementation of low-cost strategy between M Company and H Company,finds that M company carries out low-cost strategies through targeted cost management,components purchasing management,centralized purchase and price linkage of bulk raw materials,value engineering and benchmarking projects and so on.H company implements low-cost strategies through measures like targeted cost management,value engineering,organizational change,and process restructuring.Secondly,through interviews and investigations,this paper proposes many problems faced by B automobile Group in the process of implementing low cost strategies,for example,there are problems like insufficient technological innovation capability,difficulty in making breakthroughs for products,imperfect information platform,stale management model of joint venture brand enterprises,interest disputes between joint ventures,employee’s weakness cost awareness and so on.Furthermore,based on the group level,there are many business segments of B automobile Group.The management models of different types of enterprises are different,and different enterprises have different cultures,and implementation path of the choice of low-cost strategy should be considered respectively by different enterprises.Finally,I hope to find new ways of making profit grow for the Group through the research of enterprises in B automobile Group.Simultaneously,I hope that the research results obtained can have some reference significance for the cost strategy management of China’s automobile companies.