We are entering the twenty-first century and China is a focal actor of globalization, in areas such as manufacturing, shipping, steel, and not least the auto-parts industry. That latter areas comparative advantage is a question of survival due to the ...
We are entering the twenty-first century and China is a focal actor of globalization, in areas such as manufacturing, shipping, steel, and not least the auto-parts industry. That latter areas comparative advantage is a question of survival due to the fierce competition from domestic as internationals competitors.
Nowadays, Chinese’s auto-parts industry is catching up with leading automobiles nations, and further the automobile industry has played a key part of development of national economics in modern history. In this context, a research on automobile industry may reveal practical and historical aspects of Chinese auto-part industry.
In 2008, China’s auto-parts and assembly manufacturing companies produce value of 383.8 billion Yuan, and moreover industrial output value increased with 18.67% from 2007. Further in 2009 China's auto-parts and assembly manufacturing companies reached all time high in the industrial output, with value 539.7 billion Yuan, and compared with 2008, it was an increased on 34.35%. And in 2010, China's auto-parts and assembly manufacturing companies in the industrial output value reached 683.5 billion Yuan, and increased with 37.34% from last year. However 2011 will be the all time high with expected output value of 700 billion from domestic auto-part industry.
However, Chinese auto parts suppliers are competing with foreign companies in the auto-part industry segment. Furthermore through competition the domestic will meet challenges as well as opportunity.
This paper will focus on the competitive aspect of the Chinese auto parts suppliers. I will use M. Porter’s “Competitiveness Model” as theory and SWOT as the analytical tool. Further I will explorer the concept of competitiveness, and define the key element of competitiveness. Next I will use forming mechanism, which provides a good framework to analyze comparative advantages on auto-parts suppliers segment between Korea and China,
Content of this paper: part one: expatiate relevant concepts and the goal for the paper; part two: summarize literatures on the theory and methods for thesis; part three: realize the current world auto parts industry, instance Korea and China; part four: analyze the competitiveness of Korea and China’s auto parts industry, and run a comparison between those countries with SWOT Analyze; part five: the conclusion of this article.