Research On The Competitive Strategy For SAIC’s New Energy Vehicles

Since the second half of 2020,with the continuous improvement of the penetration rate of new energy vehicles,the stock price of Tesla,Nio,Xiaopeng,Li Auto and other new forces has ushered in dozens of times the increase in stock prices.The total market value of BYD has increased by more than 5 times,and the market value of traditional vehicle companies such as Great Wall Motors and Chang’an Auto has also increased by more than three times,while SAIC Group’s stock price has been wrapped.The reason is that as a total of 16 consecutive years of car sales champion,SAIC Group cannot get rid of the dependence on basic fuel vehicles in a short period of time.Therefore,the secondary market still regards SAIC Group as a representative of traditional fuel vehicle companies.At the same time,affected by factors such as the significant decline of the national new energy vehicle industry subsidy policy,the significant price reduction promotion of traditional fuel vehicles,and the increasingly fierce competition in the new energy market,the sales performance of SAIC Group’s best-selling models fell,and the group is facing challenges.In this context,this article strives to explore the company’s competitive strategy that promotes the breakthrough of the SAIC Group’s new energy vehicle business and solve the company’s predicament.This article uses the theory of competitive strategies in the strategic management and new energy vehicle industry in China and other countries and combines the relevant theory of competitive advantages.On this basis,the new energy vehicle business of SAIC Group is used as the research object,and the research methods such as literature analysis,benchmark comparison,and case research for strategic analysis,selection,and formulation are as follows:First,analyze the current status of the new energy vehicle business of SAIC Group,to obtain problems in management,research and development,and marketing,and point out the reasons for the problems.Then use PEST analysis tools to analyze the external macro environment of the enterprise in aspects of politics,economy,social culture and technology.Then use the Porter five force model to analyze the overall industry and competitors,to obtain the opportunities and threats that SAIC Group is currently facing,and use the EFE matrix to quantify key external factors.The conclusion is that the field of new energy vehicle business in SAIC Group is higher than the average level in using external opportunities and avoiding external threats,reflecting the company’s ability to avoid risks and use industry opportunities.Second,the internal environment of SAIC Group Corporation is analyzed from the perspective of capacity and internal resources.The perspective of ability is mainly analyzed from the aspects of management,marketing,and research and development.The perspective of resources is mainly analyzed from the aspects of finance,brand and other aspects to obtain the advantages and disadvantages of SAIC Group Corporation.Then use the IFE matrix to quantify key internal factors.The conclusion is that the internal business of SAIC New Energy Vehicle has a relative advantage,but the advantage is not obvious.It is also necessary to continue to adjust and optimize its operation and competitive strategy to improve the core competitiveness of SAIC New Energy Vehicle.Again,use the SWOT analysis matrix to analyze opportunities and threats,advantages and disadvantages.Although SAIC Group’s layout in the field of new energy vehicles is earlier,there is still a certain gap in brand influence compared with other companies,especially new forces.On the other hand,compared with competitors such as the internationally renowned brand Tesla and the domestic independent brand BYD,the performance gap on the core components still exists.The current advantages of SAIC Group Corporation are not enough to allow it to establish long-term competitive advantages,so SAIC Group Corporation should implement a WO strategy.SAIC Group needs to accelerate the construction of new energy high-end brands,strengthen marketing efforts,and strive to enhance brand influence.At the same time,it should increase the research and development investment of new energy core technologies,especially batteries,motors and other components to improve the core competitiveness of corporate products.Finally,clarify the competitive strategic planning of SAIC Group Corporation from strategic positioning and goals,strategic solutions,etc.And formulate detailed strategic implementation measures from the aspects of product differentiation,market differentiation,technical differentiation,business differentiation,etc.In order to ensure the implementation of strategies,a series of guarantee measures are proposed from the perspective of institutional,organization,corporate culture,and technology.