Study On The Innovation And Transformation Of Business Model For Car Parts Manufacturing Companies

In recent years,research on business model and business model innovation have drawn unprecedented attention and applications.More and more companies begin to use the ideas and methods of enterprise business model to improve business management and operations.In China,with the rapid development of China’s auto industry,auto parts manufacturing industry has also achieved rapid development.China’s auto sales in 2013 were 22,116,800 and 21,984,100 units,an increase of 14.76 percent and 13.87 percent,respectively,ranking first in the world for four consecutive years.The world’s top 20 most well-known auto parts companies have set up joint ventures or wholly-owned enterprises in China.According to incomplete statistics,foreign investment in Chinese auto parts market has accounted for more than 60% of market share.However,these companies only take China as a manufacturing base,and the core technology is still controlled by the foreign companies,which has weakened the competitiveness of the industry to certain extent and is not conducive to the healthy development of China’s auto parts manufacturing industry.Numerous studies have shown that the innovation and transformation of the business model are a very effective way to improve the industry’s competitiveness.It can improve the efficiency of existing industry system,and promote the sustainable development of the industry.However,when most of the auto parts manufacturers start the business model innovation and transformation practice,there are some problems including unclear positioning,unknown direction,poor targeting etc.Therefore,innovation and transformation of business models are an urgent issue for auto parts manufacturers.This paper selects a typical enterprise as the focus of the case study.Via the discussion and analysis of its existing business model,we pointed out some research questions.In addition,the paper provides detailed directions and methods related to business model innovation and transformation,as well as the safeguards.In this paper,we take G companies as the focal case,and discuss the following key questions: First,conducted the analysis of G company’s present business model and the emerging issues,including: G company’s general profile,organizational structure,customers and business models,production management,the existing problems in their current business model.Second,conducted the analysis of the internal and external environment of this industry,and pointed out the direction of G company’s business model innovation and transformation.Third,the specific implementation measures and safeguards of G company’s business model innovation and transformation.Finally,put forward the path and establish safeguards for the enterprise development business model.