|dc.description.abstract||The vehicle industry involves lots of techniques and capitals, and is a high value added industry. It contributes a lot to the whole national economic growth by increasing revenues of government taxes, creating new job employments and enhancing technology. During the recent years, the revolutionary changes of the Mainland China and the increase of the consumption capabilities of the people attracted lots of foreign investments. According to the National Bureau of Statistics of China, the amount of vehicles sold in year 2005, is 5.7 million. China then become the world’s second largest country of vehicle consumption and is the main source of the international growth within the industry.
The main purpose of this study is to understand the appropriate business strategy used while Taiwanese merchants successively transfer their business to Mainland China, in order to catch up with the changes of the market and increase business revenue at the same time.
By analyzing the case of the H company, this study emphasizes on the strategy used and the problems encountered. After a deep insight on the macro-environment, current situation of the Chinese vehicle industry and the competitive capabilities of the company, this study concludes with the following comments:
1. Current industry situation: the Chinese market has favorable investment conditions such as policy changes, economic growth and the continuous expenditure of the market. However, the harsh competition reduced the profitability of this industry, which also restricted the development. Moreover, investors should put emphasize on the over-investment, which caused the shortage of natural resources.
2. Difficulties of the market entry: Taiwanese merchants are still under restriction of the Chinese laws. The only way to enter the Chinese market is joint-venture which means that the selling strategy used in Taiwan cannot be copied in the case of the Mainland China. Finally, the shortage of Human Resource also restrains the company from expending.||en_US|