Research On The Development Strategy Of GW Company

Auto Extended Warranty is vehicle extended warranty period and mileage,refers to the vehicle with extended warranty service can continue to enjoy the warranty service during the extended warranty period for the vehicle failure caused by the quality problems or mechanical problems of the product itself after the expiration of the original quality assurance period.Auto Extended Warranty is the main business of GW Company,85% of the revenue and 90% of the profit of GW come from the business of Auto Extended Warranty.The auto extended warranty service appearance in China is having a certain historical backgrounds: firstly,the increasingly fierce competition makes the focus of competition gradually shifts from price to after-sales service.Secondly,consumers pay more and more attention to after-sales service.Thirdly,automobile dealers need new methods to attract consumers' attention.Fourthly,with the development of non-4S shop maintenance organizations and the promulgation and implementation of the national anti-monopoly law,customer churn rates are rising for 4S shop,the value of after-sales output also declined.Carry out auto extended warranty has a great value and practical significance for automobile manufacturers,automobile dealers and customers.For customers,extended warranty can solve the risk of uncertain maintenance cost when the original vehicle warranty expires.For automobile manufacturers and dealers,the implementation of extended insurance services has an important role in promoting to maintain customers,improve output value,and enhance brand reputation and loyalty.Auto extended warranty service is a new industry in China,it started in the 1970 s in the United States.GW took the lead in introducing the extended insurance into the Chinese market in 2003,since 2009,the extended insurance service market in China has entered a rapid development period.But on the whole,the auto extended insurance service industry is still in the initial stage of development,according to the development process of auto extended insurance in the developed western automobile market countries,the auto extended insurance service industry in China will have a faster development.Therefore,a detailed analysis of the market environment and the current situation of the development of GW in China's development strategy planning and even the development of China's auto extension industry have inestimable social significance.Based on a large number of relevant literatures,this paper expounds in detail the origin and concept of auto extended insurance service,the development status of extended insurance industry by means of market investigation,data collection,literature research,qualitative and quantitative analysis,and system analysis.The paper analyzed the market environment of GM Company in China's automobile extended insurance market,use the PEST analysis analyzed the macro environment,and use the SWOT analysis analyzed the advantages and disadvantages of its own competitive conditions.Finally,the corresponding market development strategy is formulated.This paper puts forward the strategic planning of China's market from the aspects of product,service,marketing channel,sales mode,target customer selection and so on.In order to ensure the successful implementation of GW company's business strategy for extension insurance,the thesis puts forward the safeguards to implement this strategic plan from various aspects such as personnel setup,sales management,claim service,system support,and operational support and so on.