Research On The Development Strategy Of Volkswagen FAW Engine Company

Volkswagen FAW Engine Company was established in 2006 as one of the core internal combustion engine manufacturers of the Volkswagen Group.Since its establishment 12 years ago,the company has achieved good brand influence and business performance through continuous and stable high-quality product output.However,in recent years,the emergence of new energy vehicles represented by electric vehicles has brought great uncertainty to the future development of the company.As a traditional internal combustion engine manufacturer,Volkswagen FAW Engine Company faces enormous challenges.If it adheres to the existing product strategy,it will have to face the direct challenge of the internal combustion engine ban after several years,and the transformation to the production of electronic motor is faced with organizational structure and staffing problem.A series of uncertain factors,such as technical capabilities and market instability,the future development direction needs to be clear.Therefore,this article will explore how Volkswagen FAW Engine Company should develop its development strategy,to overcome challenges,and to achieve healthy and sustainable development in the face of the threat of new energy challenges.This paper starts from the general trend of new energy development,analyzes the new situation faced by the automobile industry,and expounds the research background and significance with the general situation of Volkswagen FAW Engine Company At the same time,based on the relevant theories of strategic management,the research methods,research contents,literature review and theoretical basis of this paper are comprehensively expounded.On this basis,through the detailed description of the company's main development process,especially the investment and operation of enterprises in expanding production and research and development in recent years,the transformation needs of enterprises in the context of new energy are discussed.Secondly,this paper expounds the problems faced by the development of Volkswagen FAW Engine Company,and analyzes the causes of the problems in combination with the company's own situation.In view of the importance of external macro-environment and industrial environment changes in the process of strategic selection,this paper combines PEST analysis and Porter's five-force model to analyze the external macro environment and industrial environment that the company faces,and adopts SWOT.Analytical methods analyze the company's external opportunities and threats as well as internal strengths and weaknesses.Through analysis,it is found that the development opportunities faced by the company are more obvious than the threats,and the internal advantages of the company are also greater.Therefore,based on this,the paper puts forward the goal of the strategic development of Volkswagen FAW Engine Company,and combines the results of SWOT analysis to propose strategic choices for diversification and technological innovation,and at the same time formulate implementation plans based on strategic choices.Finally,according to the strategic implementation plan,it proposes four measures to ensure the effective implementation of the two groups' support,financial security,talent team building and staff stability,and prepare for the company's future development goals.This paper is based on the theoretical basis of strategic management,combined with the internal and external environment and advantages and disadvantages faced by Volkswagen FAW Engine Company.Starting from the theory of strategic management,in the face of constant changes in the external environment,enterprises must constantly adjust their strategic content and make decisions in order to seek sustainable living and development space in accordance with their own characteristics and resources.Therefore,Volkswagen FAW Engine Company should face the development trend of new energy,and should actively discuss the development direction,goals and tasks of the company according to environmental changes,and formulate development strategies accordingly,rationally allocate existing resources,and strive to achieve healthy and sustainable development.I hope that through the research in this paper,we can provide more meaningful reference for the long-term development of Volkswagen FAW Engine Company.