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1、Shanghai GMDecember,2002There are many kinds of vehicles.Automobile is popular on landway.As an important part of automobile, car plays a key role in modern society.In China,more and more people hold a private car, what is the industry going to be?What should Shanghai GM do?Follow me please, Decembe
2、r,2002Macroscopical Environment Chinese economy develops quickly, 2002 GDP increases in a rate as 8%, reach 10200 billion. China has the largest population in the world. Many new policies stimulate consumption.December,2002Trend of Technology Electromotion car GPS(global positioning system) Hydrogen
3、 fuel battery Air-conditioner without Fluorin Information center-with internet Safety ,Environment Friendly,Comfortable-three key charactersDecember,2002Dopod 686LeaderGPS(GLOBAL POSITIONING SYSTEM)December,200257.9259.8686.0890.81020406080100生产销售生产销售2001年1 1 0 月2002年1 1 0 月轿车产销量(万辆)195.14196.84263.
4、15266.81050100150200250300生产(万辆)销售(万辆)生产(万辆)销售(万辆)2001年1 1 0 月2002年1 1 0 月汽车产销量(万辆)The Blooming Chinese MarketJun. Oct.,2002 Auto produce increase 34.85%, sale increase 35.55%。Car produce increase 48.63%,sale increase 51.7%。December,2002Several Big CorporationsGroup nameProfit(10 billion $)Turnover(
5、10 billion $)Global sale (10 thousand)Capital(10 billion $)GM281400750166Ford671180680230Demla-Kreisler64.71473400250Volkswageoyota401060445230Honda2454023430December,2002Foreign Carmakers Seek More Presence in China Chinese car market, a lucrative cake, has garnered attentions of numer
6、ous foreign carmakers. Chinas entry to the WTO, as policies on auto sector are relaxed, many international well-known auto firms set up their bases in China to attract consumers Auto consumption becomes more and more popular in China, as both global and domestic carmakers are sharing the big cake, C
7、hinese car market will become more attractive and maturer. December,2002International GM Henry Ford made the first automobile in 1886; General Motor was established in 1908 by William C. Durant,is the biggest automobile manufacturer in the world; GM became the leader of all auto manufacturers since
8、1931; Get the market share over 15% in 2001.December,2002Global MarketSouth AmericaAsia PacificNorth AmericaEuropeDecember,2002Shanghai GM Established in March,1997,is the largest joint venture corporation of GM in China. Produce cars, engine, gear-box and other kinds of parts. Main brand: BUICK ser
9、ies, SAIL series. Want to be the best auto manufacturer in China.December,2002Regal GS 3.0 and its flagship versionBuick GlxBuick New CenturyNew Buick GLBuick SeriesDecember,2002AudiAccordBoraCompetitors of BuickPassatHongqiDecember,2002External Opportunities of Shanghai GM 1、The industry is very ma
10、ture in the world but it is a blooming industry with much market potential in China. 2、The government think much of the development of motorcar industry to cut down the influence from WTO. 3、The gap between competitors is not too much, easy to get competitive advantage in free competition stage. 4、D
11、istribution quantity raise much, individual buyers take more and more proportion. 5、Relating services are improving. 6、The industry is just beginning, many standards need to be perfected. December,2002External Threats of Shanghai GM 1、Severe competition,size smaller than multinational corporations.
12、2、Heavy tax limits consumption. 3、Price is high compared to consumers earning. 4、Economical car does not meet the requirement of environment protection very much. 5、The price of import car will be lower as the tariff down, domestic car will lose the price advantage 6、Poor city traffic and limited pa
13、rking place. 7、Depend on affiliated enterprises for model, poor R&D ability. 8、Without globalization stock. 9、Local protection.December,2002Key External FactorsWeightRatingWeighted ScoreOpportunities:1、Mature technology0.1030.302、Supported by government0.1240.483、In Free competitive stage ,no strong
14、est opponent0.1030.304、Market content increasing quickly0.1740.685、Service improved quickly0.1130.336、The industry is just beginning,many standards need to be perfected0.1430.42Threats:1、Severe competition ,size smaller than multinational corporations0.0520.102、Heavy consumption tax0.0410.043、Poor c
15、ity traffic and limited parking place0.0610.064、Depend on affiliated enterprises for model0.0620.125、Local protection0.0510.05Total:1.002.88External Factor Evaluation(EFE) MatrixDecember,2002CriticalSuccessFactorsWeightRatingWeightedScoreRatingWeightedScoreRatingWeightedScoreBrandRecognition0.1540.6
16、40.630.45MarketShare0.1430.4240.5630.42FinancialStrength0.1440.5640.5630.42R&D0.1540.630.4520.3ProductQuality0.130.330.320.2Advertising0.1240.4830.3630.36NumberofRetailOutlets0.0530.1540.230.15Product Mix0.0540.230.1530.15DependonSuppliersfor Quality0.130.330.330.3Total13.613.483.04Shanghai GMShangh
17、ai VWTianjin XialiCPM MatrixDecember,2002Market PositioningDecember,2002Internal strength of Shanghai GM 180 retail outlets distribute 104 cities,30 province,can be found almost everywhere. Mature brand,high brand loyalty. Global R&D branch meets deferent demands. Customer-first serving idea, intern
18、ational level service. Soft marketing, manufacturing, logestics, IT system. Courtlike advertisement, rich and colorful culture transmitting activities. Strong ability in product mix expanding. Good public image High quality product. Both product and service being improved. December,2002Internal weak
19、ness of Shanghai GM Cross cultural clash could end in failure of decision-making. Frequency merging might get shortage of cash flow. Too many kinds of products bring no scope economy, cost rising. Fittings stocking by electronic commerce is not so much. Too much media reporting could be understood t
20、o be untruthful. Doesnt hold Chinese consumers mentality deeply. December,2002KEY INTERNAL FACTORSWeightRatingWeighted scoreInternal Strengths1、Mature brand, high brand loyalty0.0740.282、Strong R&D and Innovation of affiliated enterprises meet market demand in time.0.0930.273、Customer-first serving
21、idea, both product and service being improved.0.1040.404、Good public image, take responsibility for society.0.0730.215、Strong ability in product mix expanding0.1040.406、soft marketing, manufacturing, logestics, IT , market reaction system.0.1240.48Internal Weaknesses1、Cross cultural clash could end
22、in failure of decision-making or opportunity losing0.0620.122、Frequency merging might get shortage of cash flow.0.1010.103、Too many kinds of products bring no scope economy, cost rising.0.0810.084、Fittings stocking by electronic commerce is not so much.0.0520.105、Too much media reporting 0.0720.146、
23、Doesnt hold Chinese consumers mentality deeply.0.0920.18TOTAL1.002.76Internal Factor Evaluation (IFE) Matrix December,2002TOWS Analysis Strengths1、Mature brand, high brand loyalty 2 、 S t r o n g R & D a n d Innovation of affiliated enterprises meet market demand in time. 3、Customer-first serving id
24、ea, both product and service being improved. 4、Good public image, take responsibility for society. 5、Strong ability in product mix expanding 6 、 S o f t m a r k e t i n g , manufacturing, logestics, IT , market reaction system. 7、Courtlike advertisement, rich and colorful culture transmitting activi
25、ties. Weaknesses1、Cross cultural clash could end in failure of decision-making or opportunity losing 2、Frequency merging might get shortage of cash flow. 3 、 T o o m a n y k i n d s o f products bring no scope economy, cost rising. 4、Fittings stocking by electronic commerce is not so much. 5、Too muc
26、h media reporting 6、Doesnt hold Chinese consumers mentality deeply. December,2002 Opportunities 1、The industry is very mature in the world but it is a blooming industry with much market potential in China. 2、The government think much of the development of motorcar industry. 3、The gap between competi
27、tors is not too m u c h , e a s y t o g e t competitive advantage in free competition stage.4、Distribution quantity raise much, individual buyers take more and more proportion.5、Relating services are improving.6、The industry is just b e g i n n i n g , m a n y standards need to be perfected. S-O Str
28、ategies1、Form GM(China) group with four manufacture centers- East China, South China, North China and West China step by step through merging and other way. (S2, S6, O3, O4) W-O Strategies1、Localizing the high level supervisors (W1,W5,W6,O2,O5).2、Set up survey & research centers in East China, South
29、 China, North China and West China to know consumer deeply. TOWS Analysis continuedDecember,2002 Threats1、Severe competition , s i z e s m a l l e r t h a n multinational corporations 2、Heavy consumption tax 3、Poor city traffic and limited parking place 4、Depend on affiliated enterprises for model,
30、poor R&D 5、Local protection S-T Strategies1 、 I n t e n s i f y t h e cooperation with certain g o v e r n m e n t . (T2,T3,T5,S1,S4) 2、Cooperate with local government to merge local auto manufacturers through diversification of investors. (S2,S6,T1,T4,T5) W-T Strategies1、Control the size-expanding
31、in a suitable level before the relating policies are lucidity. (W2,W3,T2)2、Decrease the cost of advertising, change the form to meet Chinese consumers sight. (W5)TOWS Analysis continuedDecember,2002CAISFSES(2.6,1.75)ConservativeAggressiveDefensiveCompetitiveInternal strategic position External strat
32、egic positionFinancial Strength +3.5 +6 best to +1 worst Environmental Stability -1.75 1 best to 6 worstCompetitive Advantage -2.0 1 best to 6 worst Industry Strength +4.6 +6 best to +1 worst X axis:4.6+(-2.0)=2.6 Y axis:3.5+(-1.75)=1.75SPACE MatrixDecember,2002SGMThe IFE Total Weighted ScoreStrongA
33、verageWeak3.0 to 4.02.0 to 2.991.0 to 1.99HighIIIIII3.0 to 3.99 MediumIVVVIThe EFE TotalWeighted Score2.0 to 2.99LowVIIVIIIIX1.0 to 1.99HOLD AND MAINTAIN1.02.03.04.01.02.03.02.762.88The Internal-External (IE) MatrixDecember,2002RAPID MARKETGROWTHQuadrant IIQuadrant ISGMCOMPETITIVESTRONGPOSITIONCOMPE
34、TITIVEPOSITIONQuadrant IIIQuadrant IVSLOW MARKETGROWTHGrand Strategy Matrix1.Product development2.Market penetration3.Market development4.Forward integration5.Backward integration6.Horizontal integrationDecember,2002 STRATEGIC ALTERNATIVESIntegration, selling on the spot.O n e c e n t e r , market p
35、enetration.Key FactorsWeightASTASASTASOpportunities: 1、Mature technology0.1040.4020.202、Supported by government0.1240.4830.363、In Free competitive stage ,no strongest opponent0.1030.3020.204、Market content increasing quickly0.1730.5120.345、Service improved quickly0.1130.3340.446、The industry is just
36、 beginning,many standards need to be perfected0.1430.4230.42Threats: 1、Severe competition ,size smaller than multinational corporations0.0540.2020.102、Heavy consumption tax0.0430.1220.083、Poor city traffic and limited parking place0.0630.1820.124、Depend on affiliated enterprises for model, poor R&D0.06 5、Local protection0.0540.2020.10Sum Total1.0 3.10
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