Dongfeng Chaochai Catches the Opportunity to Realize the Growth of the Automotive Industry Value Chain

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With the global economic downturn and China's economic slowdown, China's auto industry has entered a winter. How to meet 2009, how to “grasp the opportunity, meet the challenges, and achieve the joint growth of the entire industry value chain” is currently the main topic of the internal combustion engine industry.

Opportunities and challenges coexist

As China enters the automotive industry, the development of the automobile industry is expected to reach or exceed 17 million vehicles by 2020, which will become the world's largest consumer car market. At the same time, the rapid development of the export market has made China's autos a huge space for development in the international market. The versatility of the engine makes it have great potential for development in many areas, such as engines in the construction machinery, generator sets, pumps and other industries have a good market.

The state has intensively introduced a number of favorable measures to stimulate domestic demand and increase the construction of major engineering facilities, which will promote the rapid development of trucks and construction machinery. Accompanied by the urban infrastructure and the integration of urban and rural areas, the rapid development of bus passenger transport, construction vehicles and special vehicles will be promoted. In recent years, efforts have been made to develop the rural economy and allow land to be transferred freely. This will free some people from the land, engage in urban and rural logistics, and accelerate the development of light trucks in cities and towns. At the same time, energy conservation and emission reduction is already a political task, which will promote the rapid development of gas power throughout the country.

Changes in the pattern of the economic industry and the structural adjustment of the automobile industry have prompted the competition in the Chinese auto market to change from the competition of quantity and quality to the competition of technology, standards, and brands. The global competitive landscape has prompted brand enterprises that have rapidly “developed new technologies and applied new standards” to stand out from the competition and become the winners of market competition.

The challenge also exists.

As we all know, this year, the N2 national vehicles will implement the third national emission, N1 vehicles will implement the third national emission next year, and the 2010 national plan will implement the national fourth standard. This increasingly stringent step-by-step national policy will prompt the automobile market industry standards to be upgraded. In addition, the state will further introduce a series of policies and regulations such as the “Minimum Fuel Consumption Limit”, which will prompt the engine industry to raise its standards as soon as possible and also face greater challenges.

Changes in regional industrial structure have caused changes in the regional auto market structure, and customer needs have become more professional and personalized. For example, with the acceleration of the process of urbanization in rural areas, passenger cars in the villages have been rapidly developed. Such as Dongfeng, the first to seize this business opportunity to achieve rapid growth in the 6590 chassis market. The discovery of new market segments and the development of specialized and personalized products are the tools for enterprises to win in the future.

The growth rate of global economic development will decline, and demand will also decrease. This will lead to an increase in competition in the international automotive industry. In order to protect their own interests, developed countries will also increase their technological bastions. The cost of developing advanced technologies for Chinese companies will increase, and their ability to control core technologies will be hindered.

Chaochao, as the preferred brand for light diesel engines, will develop in the era of this opportunity and challenge. How will it develop during the period when the industrial structure is adjusted and the competitive landscape is changing? As Chaochao has always been pursuing, “My quest, you Needs." Chaochai will strive to promote the development and application of new products and new standards, lead the development direction of China's light diesel engines, expand product lines, enter new markets, increase the competitiveness of “high-quality power” brands, and promote the common growth of the entire industry value chain. .

Constantly innovate to build business strength

"Science and technology are primary productive forces." The key to sustainable development of enterprises lies in technological innovation. Chaochai has always adhered to the principle of “independent research and development, cooperation and introduction” and achieved the goal of “reserving generations, R&D generations, and production generations”. In the development of Chaochai, it has experienced several key transitions, each of which is inseparable from technological innovation. From 1979, China’s first high-speed vehicle diesel engine CY6102 was successfully developed in Chaochao, and in 1984, it was successfully introduced to Chaochao’s 4-cylinder machine; then, through the introduction of foreign advanced technology, Dy Chai’s 102 series and 3-liter series are now established. The complete product line of D series and gas series fully embodies Zhachai's innovative idea of ​​being one step ahead and dare to be ahead of others. Zhachai's continuous technological innovation makes Dawning Diesel continue to develop under increasingly severe competitive pressures. Former development has maintained its position as the industry leader for more than 40 years.

In order to improve the competitiveness of Chaochao itself, Chaochai has continuously improved and innovated in its own talent mechanism and management model, and has made remarkable achievements. Chaochai Company implements new rewards and innovations for all employees, gradually realizes the marketization of labor value, and introduces the design of full-time careers so that employees’ intelligence and self-worth can be fully exerted, thus truly inspiring “talent is the first resource of the company. The role of In response to the increasingly fierce international competition, Chaochai took the lead in the industry and timely made a strategic decision to use information management tools to conduct comprehensive innovation management, enhance independent research and development capabilities, and improve the company's core competitiveness. Through the introduction of internationally advanced management ideas, TPS and QCD, and based on this, DPS has established a lean management model featuring Chaochao’s unique characteristics, making Daw Chai’s management tools reach the international advanced level; To improve management efficiency, ZACC's ERP/CRM, PDM, and KM systems are also on time. The application of these advanced management ideas and systems has made Chaochao’s quality and efficiency all-round.

Marketing is the key to the survival and development of a company. Zhachai is aware of this, and therefore continues to innovate in marketing. The first is the innovation of marketing concepts. Chaochai broke through traditional marketing concepts and opposed price competition. We advocated the social marketing concept of “caring for customers and contributing to society”. Chaochao advocated the concept of “discovery and lead marketing”, found business opportunities in markets that were continuously subdivided, and realized “win-win” for the entire industry value chain. Followed by the innovation of marketing model, Chaochao set up a cultural festival of "cultural setup and economy singing", as well as various greetings and high-level regular meetings, and printed marketing activities featuring Chaochao's characteristics, which further improved customers and customs. The feeling between firewood. We also held a joint promotion campaign for new products close to the automobile plant, which is close to the user's “Chaoyang Diesel Engine Challenge Low Cost of Use, Looking for Typical Riches” activity. These activities are the perfect embodiment of Chaochai’s marketing model innovation. Chaochai is precisely for the fierce market competition, through continuous technological innovation, management innovation, marketing innovation to build and enhance the company's "soft power" and improve the company's sustainable development capabilities.

Adhere to the market blue ocean strategy

The blue ocean strategy of the market is certainly one of the best strategic choices for the survival and development of auto companies. However, the absolute blue ocean strategy is constrained by numerous factors in the current market conditions in China. The viable strategy should be how to find the relative balance between its products and the market in the market's competition in the Red Sea—that is, Daw Chai’s own blue ocean strategy.

Chaochai 4102, 4100 engine is the main force of the light truck supporting power recognized by a large number of users in the industry, currently occupying 1/3 of the pure light truck supporting market, and the domestic competition of this power has become a Red Sea. Chaochai has developed a 4.7-liter D-series product with a national development platform for medium-sized trucks in the upstream of its flagship product, and has developed a 3-liter series for the downstream introduction of Nissan’s diesel technology for domestic high-end light trucks such as light passengers, pickup trucks, and SUVs. The engine was later introduced into UGS 3.0, the world's top technology from UWC. At the same time, Chaochai also developed special engine for construction vehicles and passenger car gas engines to expand the product range and develop professional performance to explore a diversified market. area. In addition, Chaochao also increased the development of overseas markets. In 2007, it established the Overseas Business Division and established four business representative offices in different regions of the world to strengthen sales and services.

Based on the degree of market competition, Chaochao Company “to avoid being heavy and light”, aiming at the market distribution of products to “strengthen weaknesses and avoid weaknesses”, and then implement its own “Blue Ocean Strategy” to promote the rapid development of the company.

Improve the competitiveness of "high quality power" brand

The current competition is the competition between standards and technology, the competition between brands and quality, efforts to enrich the connotation of "high quality power", establish the brand image of Chaochao, and promote the joint growth of the entire value chain. This is the direction that Zarqar has been making unremitting efforts.

“Leading One Step”: Chaochai has formulated a mid- and long-term product plan and strived to promote the application of new materials and new technologies. It has been the first to introduce two state-four light-duty diesel engines this year. In the meantime, within five years, Chaochao will plan to launch a nationwide Fifth, the country's six emissions of products.

“Social Responsibility”: A company with social responsibility can create more social wealth in order to obtain customer recognition. Chaochai has been working hard to assume more social responsibilities, research and develop new technologies, apply new standards, and improve the viability of the industrial chain. At the same time, in order to repay the society, Chaochai will commit itself to the pursuit of public welfare undertakings and actively invest in the establishment of Western Hope Primary School. At present, many hope primary schools have been established in Shaanxi, Gansu, Ningxia and Qinghai provinces.

"Low use cost": Good product + Good use method = Low use cost, Chaochai set up 37 training bases throughout the country. Throughout the year, it continuously trains host plants and service providers with new technologies and new standards. Channel service capabilities; 26 regional accessory sales agents have been set up, extending to second-tier and third-tier cities to ensure the authentic parts supply of customers. At the same time, in order to care for the growth of customers and increase the interaction between companies and customers, we have also made more attempts, such as “Finding the Typical Activities for Chai-Machine Wealth,” and “Low Use Cost Competition,” and soliciting the best from our customers. Use methods and the most effective wealth-building experience, and promote it to all customers.

Strengthen joint ventures and cooperation

In order to improve the survivability of domestic engine companies, in order to have stable power resources, the OEM has the intention to strengthen strategic cooperation and form a stable supporting system. At the same time, in order to improve product quality, reduce development risks, and satisfy the continuously subdivided professional and personalized market demands, simultaneous research and development by upstream and downstream enterprises is the direction for future development. At present, Daw Chai is also doing this effort. In 2008, the Hefei Chaochai factory, which was jointly established with Jianghuai, has been officially put into production.

In addition, with the development of economic globalization, the process of market globalization is accelerating, and foreign competitors have gradually entered China. The competition of enterprises will also be globalized. However, we are currently participating in international competition. There is still a gap between the relatively backward technology and the lack of management experience and financial strength. How to grasp the timing and overcome the challenges is the question we have been thinking about. At present, Chaochao Company is actively adapting to the new domestic and international market conditions, and is striving to explore and seek opportunities to develop and introduce technology and management experience with advanced foreign standards to enhance the company's international competitiveness.

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