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Chinese Automotive Industry Essay

2690 words - 11 pages

Executive Summary:This Assignment - Stream 1 is based on a business-formulated report discussing the Chinese Automotive Industry, and includes a general description of the industry, such as production details, major players, etc. This report will also attempt to identify and cover macro-environmental forces affecting the industry and the likely consequences as a result of these forces. It is hoped that through this assignment and by investigating the automotive industry, a broad knowledge of the industry mentioned would be gained, an understanding of how the macro-environmental forces can and might affect the industry and thus enhance, improve and build my marketing skills. The aim of this assignment is also to provide an insight into how marketing can impact and influence us, in turn how we as the public community can influence others both now and in the future.1.0 Introduction:The Automotive Industry is a large and complex enterprise which not only consists of the manufacture and sales of passenger vehicles, but also the manufacture and sales of commercial vehicles, trucks, buses, planes, motor vehicle components, vehicle body manufacturing, automotive electrical/instrument manufacturing, engines and motor cycles. This vast industry produces, sells, imports and exports motor vehicles from passenger vehicles to vans, sports and luxury cars. It also comprises services ranging from repairs and safety tests to insurance, design, research and development. The major market segmentation includes private buyers, government fleet purchasers, business fleet purchasers and buyers of heavy industrial vehicles. This industry, however, is affected and influenced by many factors outside the control of the industry.2.0 Preliminary business analysisIn China Automotive industry, Shanghai GM belongs to monopolistic competition. For a huge demand market, there are many producers and no collusion in this industry.The major product of shanghai GM is BUICK sedan. Sedan belongs to luxurious goods in China, thus in shanghai GM, quality control is main task of management, this include from raw materials to sedan quality. Because consumer need pay at least more than 100,000 RMB for a sedan, they expect the sedan should look beauty, safe and comfortable. Shanghai GM accept new ideas and designs from foreign, and R&D the new productions by themselves.On price, Shanghai GM has pioneered a one-tier distribution system and a unified pricing strategy nationwide to guarantee value for customers. But as consumers, they always expect the goods cheaper and better, with a good price. Thus shanghai GM decide to promote its products 2 times per year in different places and period. Shanghai GM always does its best keeping a good customer relationship with its customers. And shanghai GM can give the customer some discount for who buy the product at second time.3.0 cost analysisAutomotive Manufacture is a very huge capital investment.As Automotive Manufacture Company, Shanghai GM...

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