Research On The Multinational Operation Strategy Of "Borrowing Ships To Sea" Of SAIC

In April 2018,the Chinese government announced that the country's auto industry would lift the limit on foreign ownership of passenger cars by 2022,as well as the number of joint ventures of no more than two.This commitment,while substantially reducing the level of protection for the auto industry and expanding its opening to the outside world,will also rewrite the pattern of China's auto industry and end the current situation in which most state-owned enterprises in the auto industry rely on joint ventures to "win" their development,so that they have to increase their own brand-building efforts to cope with increasing competitive pressure.At the same time,with the rapid growth of the number of passenger cars in the domestic market in recent years,the competition is becoming more and more intense,and the market has become saturated.The joint venture plate is further exploring,and the situation facing the independent plate of China's automobile enterprises is even more severe,profit margins will squeeze further.In the face of increasingly fierce competition environment,China's auto industry what to do? How to stand firm in the competition,break out of the encirclement,brand reputation,resolve the problem of domestic overcapacity? Then we must actively "go out" and choose a suitable t multinational operation strategy.First of all,this paper will analyze the causes of the multinational operation of SAIC,through SWOT analysis of SAIC's environment.Although the sales volume and brand image of China's own-brand cars have improved a lot compared with the past,it has not changed that from 1980 s to the beginning of the 21 st century,joint ventures have dominated the market,the country needs to vigorously develop its own brand.At the same time,in the face of the weakness of China's auto market,more and more of China's auto enterprises through exports,mergers and acquisitions,such as overseas operations.In addition,the European,American and Japanese automobile enterprises are also accelerating the process of international operation.In the face of this phenomenon,SAIC's multinational operation is urgent.Secondly,it analyzes the characteristics of SAIC's multinational operation strategy of "borrowing ships to sea",which mainly includes borrowing channel,borrowing capital,borrowing technology and borrowing brand.And the reason why SAIC chose the strategy of "borrowing ships to sea" and the mode performance of "borrowing ships to sea" are analyzed.In fact,"borrowing ships to sea" is a concrete expression of the "going out" strategy.It's similar to a strategic alliance.Through the comparative analysis of the advantages and disadvantages of the "borrowing ships to sea" strategy and other modes,it is found that no matter which multinational operation mode and strategy is used,there are both advantages and disadvantages.But as long as it is suitable for their own development path is the most important.There is no right or wrong strategy,as long as it is suitable for their own,can bring long-term profits are considered a successful strategy.The development of enterprises should be based on their own production and management situation,advantages and disadvantages and market environment for comprehensive consideration,weighing the pros and cons.Only gradually,Down to Earth can truly establish their core competitiveness,to create a truly belong to their own car brand.Through this research,we believe that the main reason is that the Chinese automobile is big but not strong,the most important reason is that we have not mastered the core technology,through the active multinational operation,to create a strong international competitiveness of independent brands.To this end,we should first set up strategic alliances," borrowing ships to sea ",introduce foreign advanced technology and management methods through various channels,and pay attention to digestion and absorption,and turn them into our own competitive advantages in the shortest time,a virtuous circle of "introduction-digestion-absorption-independent innovation" will be formed to completely change the situation of joint ventures' inactive development and gradually get rid of foreign technology monopoly.Secondly,under the guidance of the government,we should integrate all kinds of resources,establish and perfect our own R & D centers or R & D Institutions,increase R & D Investment,and strengthen our efforts to overcome the weak links of our own technology.