Rearch On The Competitive Strategy Of Commercial Vehicle Market In Mexico Of FAW JIEFANG

FAW JIEFANG has been ranking the 1st for four consecutive years in terms of market share in China’s heavy truck industry with a market share up to 30%.In 2018,FAW JIEFANG surpassed Benz with its single brand sales volume leaped to No.1 all over the world.However,FAW JIEFANG’s performance in the overseas market yet to be improved.In 2019,China exported totally 121,000 units of commercial vehicles with GVW above 3.5 tons out of which FAW JIEFANG has contributed 7511 units with a market share of merely 6.2%ranking the 4^thafter CNHTC,BAIC and Shaanxi Automobile,which is extremely inconsistent with its brand stature and its mission to be China’s first and world’s leading intelligent transportation solutions provider.In addition,the barriers to enter into Chinese market will decrease with the opening of the share ratio policy,it becomes difficult for local enterprises to prosper and stay out.It is inevitable to have a positive confrontation with international enterprises.As a leading domestic automotive enterprise,FAW JIEFANG needs to accelerate the overseas market layout,focus on the main marketing area and key strategic markets to drive regional market layout through strategic market breakthrough thus to make"ice breaking"of overseas business as soon as possible.If we take an overall look at China’s commercial vehicle exports,ASEAN&South Asia,Africa and Latin America are the top three regions for China’s export of commercial vehicles.In the last few years,Chinese automotive players have put more efforts in the market development in Latin America;therefore,this region has gradually become the third battlefield for Chinese commercial vehicle enterprises in overseas market.FAW JIEFANG has started to tap Latin American market two years ago considering Mexico is its bridgehead in the process of regional development of Latin American market.Under such a background,it is of great significance to study the overall market environment of Mexico and formulate the market development strategy of Mexico for FAW to achieve its market breakthrough in Mexico in a short term.Based on the market insight and PSET model,this paper analyzes the macro environment of Mexico market;from the perspective of the value chain of commercial vehicle sales,this paper studies the main players in Mexico’s local commercial vehicle market from the aspects of operation mode,pricing mechanism,application field,profitability,after-sales service,automobile finance and localized production.Through SWOT analysis,it combines the opportunities and threats of the Mexican market with the advantages and disadvantages of FAW JIEFANG,and finally concludes that the development strategy is the best choice of FAW JIEFANG’s competitive strategy in the Mexican market.After synthesizing the above analysis and research,this paper identifies Michael Porter’s three competitive strategies one by one,and finally determines the differentiation strategy,which is from market positioning differentiation,product differentiation as well as service differentiation to implement the differentiation strategy.With supports from organizational structure,channels,product supply and financial measures,we can ensure the effective implementation of the overall market strategy in Mexico and the effective breakthrough of the Mexican market.