皇冠体育app

Toyota adopting three-stage plan
By Jiang Yan (皇冠体育app Business Weekly)
Updated: 2004-10-22 10:03

The Japanese carmaker was a latecomer to the 皇冠体育app market. Within its global strategies, North America is the top priority, followed by its home country Japan.

皇冠体育app has been included in Toyota's top development strategy in recent years with its first 皇冠体育app-made VIOS sedan produced in Tianjin in October 2002.

Considering 皇冠体育app is an immature auto market, the company has adopted a three-stage development plan -- first to establish a local sales network and launch brand promotions, then to build auto parts manufacturing bases, and, finally, to establish joint ventures (JVs) with local players and produce automobiles.

About 57 per cent of respondents said Toyota adopted the right strategy for expansion in 皇冠体育app and avoided possible risks.

Although a latecomer, Toyota has jumped to the front in terms of imported car volume -- 50,000 units annually. It has 57 JVs and wholly funded auto parts companies scattered across 皇冠体育app.

Now, the company is stepping into the most important and critical stage -- speeding up the localization of its products, since its rivals, such as Honda and General Motors, are accelerating their penetration into 皇冠体育app.

After the market entry of the Prado and Land Cruiser with 皇冠体育app's First Automobile Works, its new product with Guangzhou Automobile Manufacturing Co -- Camry, which was a great success in the Untied States -- is also being developed.

About 80 per cent of the respondents predicted Toyota will continue its brilliant performance in the US market, since the company has established a far-reaching sales network (35.6 per cent) and its product brands are highly recognized by Chinese customers (52.9 per cent).

However, there are also unsatisfactory results of the development strategy. Seventy-five per cent of the 104 senior company managers surveyed said Totoya only wants to sell cars in 皇冠体育app, but does not want to share technological know-how.

Some 40.4 per cent of respondents said the company does not give enough attention to 皇冠体育app market.

Forbes magazine commented on Toyota's success in the US auto market, saying that once the company sets goals, it will manage to exceed the targets. What is more challenging to its rivals is Toyota's strategy to realize these goals.

That assessment may well apply to its 皇冠体育app expansion. Although Toyota missed the first opportunities, it will likely catch up if it pays more attention to the 皇冠体育app market and introduces high-end brands.

General Motors

US-based General Motors' (GM) navigation in 皇冠体育app was very smooth and successful during its first five-year period.

The 101 senior corporate managers surveyed -- who are keen observers of 皇冠体育app's auto market -- spoke highly of GM's 皇冠体育app strategies.

They mainly contributed GM's success in 皇冠体育app to three factors:

* First, the company had a good start when it entered 皇冠体育app. Shanghai GM -- a joint venture between GM and the Shanghai Automotive Industry Corp (SAIC) -- invested up to US$1.5 billion in 1997 to produce Buick and GM promised to release a new model every year afterwards;

* Second, GM formed strategic co-operation agreements with local partners. Its alliance with SAIC enables GM to develop rapidly and smoothly in 皇冠体育app. In 2002, GM, together with SAIC and Shanghai GM, purchased Yantai Bodyshop Corp for 1.44 billion yuan (US$173.9 million). Later that year, GM and SAIC signed an agreement with Wuling Automotive in South 皇冠体育app's Guangxi Zhuang Autonomous Region to establish a joint venture; and

* Third, GM's success was not only because of its sales power, but also thanks to its good public relations.

After its first success, what will be GM's next five-year strategy?

Respondents said GM will challenge Volkswagen to acquire the biggest market share in 皇冠体育app (45 per cent).

About 26 per cent of respondents predicted GM will enhance its research and development as well as manufacturing ability in 皇冠体育app.

After GM builds 皇冠体育app into its Asian flagship market, the company will then expand into Japan.

Some managers surveyed said GM will try to acquire a controlling stake in its co-operation with local partners (23 per cent).

As for the company's sales networks, 24 per cent of respondents said GM will expand its application of the "GM World" sales strategy.

The one-station sales-service networks will become GM's major sales promotion strategy in the Asia-Pacific. Every station streamlines auto products sales -- including Cadillac, Hummer, Oldsmobile -- financing services and after-sales services.

This sales model was accepted by 85 per cent of respondents. About 58 per cent of people surveyed like this model, and about 10 per cent said this model will negatively affect GM's general image.

The survey indicated, on the whole, GM's expansion in 皇冠体育app has been very successful. However, GM needs to clarify its brand positioning and image in 皇冠体育app.

Ford

Despite being one of the world's top auto manufactures in the world, Ford has had a bumpy ride in 皇冠体育app.

First, its co-operation with Dongfeng Motor was aborted. Then its Shanghai project unexpectedly went to GM. Finally, its co-operation with Jiangling Motor Corp gave Ford a taste of the 皇冠体育app market, but it still failed to access the mainstream family auto market -- which is the most lucrative piece of 皇冠体育app's auto market pie.

Its history turned to a new page only when the Fiesta was launched after Ford established a JV with Chongqing Chang'an Automobile Co.

However, the auto giant has missed the best opportunities in 皇冠体育app.

Thirty-seven per cent of the respondents said Ford chose the wrong product to launch in 皇冠体育app. Fiesta has not been warmly welcomed by local consumers. And 21 per cent of people surveyed thought poor timing was a factor, because Fiesta was besieged by price wars at the time of its launch.

Others attributed Ford's failure in 皇冠体育app to improper strategies in initial stages (26 per cent), wrong partners (10 per cent) and the company's conservative attitude (13 per cent).

Now, competition is becoming increasingly fierce in 皇冠体育app's auto market. How can Ford re-establish itself here?

Respondents suggest Ford must introduce more brands (27 per cent), adopt prudent investment strategies (25 per cent), and seek new local partners and change its overall 皇冠体育app blueprint (23 per cent).

Regardless of its expansion plan, Ford still has a long way to go in 皇冠体育app.



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