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Contribution of Used-car Business for OEM and Implement Strategy

Author: SunXiaoBing
Tutor: LiNaiHe
School: Shanghai Jiaotong University
Course: Business Administration
Keywords: brand-used-car OEM strategy
CLC: F426.471
Type: Master's thesis
Year: 2011
Downloads: 103
Quote: 0
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Abstract


A complete vehicle market should be composed of two departments of new car and used car. Today’s used car market is the continuation of the new car market yesterday, and today’s new car market has generated a second-hand car market of tomorrow. Therefore, the used car market certainly has its own laws, but closely related to the new car market. For purposes of future automobile circulation, used-car market development and maturation is the important foundation for the sustainable development of the change of the old and new vehicle. Development process of the world auto market to date indicates that: buoyant new vehicle market is the need to establish on the basis of a solid car circulation structure. Efficient vehicle metabolism mechanism of operation is the guarantee of healthy operation automobile market.Brand used car business on an important role in perfecting the value chain of host plant. This article analyses the importance and influence factors of residual value of used cars and brand-used-car contribution to improving automotive residual values. Brand-used-car business can promote new car sales, bring business to after-sales service and can provide effective support for the old car deal in car rental.Used-car market has grown rapidly in China, brand-used-car network coverage is the natural advantages, consumer demand for regular used car business urgently. All the factors make brand-used-car have good opportunities for development. The major participators of Used-car market in China are: used car trading market, used car appraisal agencies, auction companies, second-hand car selling companies, brokerage companies and individuals. Mainly used-car business with smaller brokerage firm grasp of this detrimental to the used car market as a whole, form the root causes of this situation is that unreasonable tax in used car industry, to fundamentally raise the level of used-car industry forming healthy industry competition, it need a fair tax system and give the main participators a fair competition environment and reduce the rent-seeking. OEM brand-used-car is an important force for improving used-car industry. For automobile enterprises, brand building is the foundation of brand-used-car operation, brand design should take full account of the customer needs to respond to customer demand for non-accident car and warranty. Brand-used-car must operate to achieve development, establish efficient used car management system and with external marketing platform to improve internal efficiency in management and marketing, improve inventory turnover and reduce business risk. OEM brand-used-car should make full use of the host plant and subsequent business opportunities, and actively with the other business integration, and realize mutual-win and common development.

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CLC: > Economic > Industrial economy > China Industrial Economy > Industrial sector economy
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