Chapter 032 Tianchen Automobile Sends 900 Words

The splendid Tianxin Building, the headquarters of Tianxin Group, is not very high, just a twelve-story wide building. From the front, the structure of the building is in the shape of a ring, as if it is not closed. The 12 floors symbolize the 12 hours of health, and give everyone the general care for the closed embrace, which is also the corporate culture of Tianxin Group.

Tianxin Group, since the outbreak of this year, this already very famous brand has been completely deeply rooted in the hearts of the people: the first to develop and put into production of preventive drugs, the first to put forward the correct treatment method of the three phases of early, middle and late, the first to develop and put into production of special treatment drugs, the first to shout to the whole country that "its drugs will never increase in price", and won the highest honorary title of private enterprises in the national commendation conference...... Today's Tianxin has quickly become the first pharmaceutical brand in the minds of the Chinese people, not only the market share has increased significantly, but also entered the European and American markets with the support of Xinlan, and the profits have been further improved.

However, this is only Tianxin's "main business", and Tianxin also has a very powerful side business. Not to mention chain pharmacies, they have already developed into the largest chain pharmaceutical retail outlets in the country with the well-known word Tianxin. The most important thing is that with the strong financial support of Xinlan Venture Fund and the technical support of Pengcheng Hualian Network Technology Co., Ltd., Tianxin Group has another network company, which is "Alibaba", which was acquired at the end of last year.

At this time, Alibaba's vitality is beginning to appear, but it has only received a total of 30 million US dollars from Goldman Sachs, Fidelity Capital, Singapore's government fǔ technology development fund, Japan's Softbank (Softbank) and Japan's Asia Investment Company A total of 30 million US dollars in capital injections. And even Japan's powerful SoftBank, after hearing about Xinlan's hand, was too busy to retreat. Just kidding, now that he is richer than Xinlan, that is, his head was kicked by a donkey, and SoftBank still relied on Xinlan's Cisco to have the current situation, how dare Son Masayoshi compete with Xinlan?

As a result, although Alibaba has not yet gone public, it has officially changed hands because of such a huge business confrontation. However, Tianxin also copied Xinlan's way and did not interfere with Alibaba's operation at all, and Alibaba only had one more chairman, a chairman of the board of supervisors and several financial supervisors than before.

However, being acquired by Tianxin is actually a good thing for Alibaba, because Tianxin announced the acquisition of Alibaba on the front foot, and Yahoo announced that it would become a global partner with Alibaba, and the two sides were mutually beneficial. Alibaba's partnership with Yahoo USA has added Internet search to Alibaba's e-commerce business group, helping Alibaba become one of the largest Internet companies in China, and occupy a leading position in China's e-commerce-related industries such as B2B, B2C, C2C, online payment, web software solutions, instant messaging, and search. Through this partnership, Alibaba has access to Yahoo USA's world-leading Internet search technology and global resources to better serve e-commerce users in China and around the world.

Originally, because this cooperation plan has targeted network instant messaging and Internet search, it was regarded by many people as Tianxin's declaration of war on Hualian, China's largest network instant messaging company, and Baidu, China's largest search engine, after entering the network technology, but the strategic cooperation between Tianxin-Alibaba and Hualian Network made people understand that Tianxin and Hualian did not plan to go to war, and the two "strong women" in the south and the north seemed to be more sympathetic, but Hualian and Tianxin have launched search engine business. The war with Baidu was guessed by everyone......

This year's first outbreak, the value of online commerce is highlighted, Alibaba has become the preferred business platform for global enterprises, and various indicators of the website continue to develop rapidly, among which the important indicators representing the activity and quality of the business website - the daily new supply and demand information increased by 3 to 5 times compared with the same period last year. Through a sample survey of Alibaba's 1.4 million Huaxia members, it was found that 42% of the enterprises reached transactions within three months during the ** period, and the enterprises whose performance rose against the trend reached the position of the No. 5 business platform. In a ranking survey of global business and trade websites, Alibaba.com ranked first.

Also this year, in May, Alibaba invested 100 million yuan to launch Taobao, a personal online trading platform, to build the world's largest personal trading website.

Now, as a young man walks into the admired office on the top floor of Tianxin Group, the employees of Tianxin Group do not know that Tianxin, a cross-industry group company, is about to take another key step.

Su Ning was wearing a very typical professional suit, black and white were distinct, delicate but not huā, although the figure was graceful, it did not look flamboyant, but subtle and elegant.

Because there were outsiders present at this meeting-Helena, President of Xinlan, and Zhao Fuquan, Research Director of DaimlerChrysler's Technology Center, Xiao Chen and Su Ning did not have any intimate actions that were out of line, and in fact, Dongfang Lianna knew the relationship between the two of them, so this meeting between Xiao Chen and Su Ning was more to give another important person a feeling of being valued.

Zhao Fuquan is the CEO and president candidate of the automobile company to be established by Tianxin Group, this candidate was selected by Xiao Chen, and he came forward to persuade Qin Qin and Su Ning, Xiao Chen did not introduce Zhao Fuquan much, but emphasized one sentence: "Zhao Fuquan is a doer with both ability and a sense of responsibility." And proclaimed: "Although he was born as a technician, he has enough overall vision and is fully qualified for the position of CEO and president." ”

At Xiao Chen's insistence, Qin Qin and Su Ning both chose to believe in Zhao Fuquan. Because Qin Qin acquired the 7% stake in Daimler in the hands of Kuwaiti government at a very fast speed, and finalized the plan to acquire Chrysler with Daimler, and at the same time secretly launched a trade with Ford for Aston. Martin, Jaguar, Land Rover three luxury brands acquisition negotiations, as one of the senior management of DaimlerChrysler, Zhao Fuquan also knew these things, and after some earnest talks, accepted the invitation of Tianxin Group, promised to be the CEO and president of the upcoming Tianchen Automobile Manufacturing Company, the annual salary is tentatively set at 6 million yuan, at the same time, during the work of Tianchen Automobile, will enjoy 1% of the company's share dividend.

Today, Zhao Fuquan will explain the current pattern of Huaxia's automobile industry and the market strategy after the establishment of Tianchen Automobile in front of Shaodong, the big boss of Chrysler and the person in charge of Xinlan Consortium Huaxia.

It will also be his first – and only – job interview.

Zhao Fuquan's experience can be described as brilliant. After receiving his Ph.D. from Hiroshima University in March 1992, Zhao worked as a research fellow at Imperial College London, UK, and then as an assistant researcher in the Department of Mechanical Engineering at Wayne State University in the United States, and was promoted to assistant professor in April 1996. In April 1997, he joined Chrysler Automobile Company in the United States as a product engineer, and Zhao Fuquan began to enter the field of automotive technology research and development. A year later, he became an engineering expert at DaimlerChrysler AG and worked on engine development. In September 1999, he was appointed as a senior expert in engine technology of the company, responsible for the development and research of automotive powertrain. Since June 2003, he has been the research director of the company's technical center. But only five months later, he was favored by Xiao Chen, the deputy director of the National Development and Reform Commission of China who had never seen him, and Shaodong, who was also the actual sense of the American Xinlan Consortium, and was selected as the CEO and president of the soon-to-be-established Huaxia Tianchen Automobile Company.

Xiao Chen took a fancy to him, naturally not because of the immortal's dream, but because his performance in his previous life was enough to make Xiao Chen believe that he had such an ability.

Zhao Fuquan in his previous life, after working in for more than 7 years, in April 2004, Zhao Fuquan returned to China and joined Liaodu Brilliance Jinbei Automobile Co., Ltd. as the deputy and general manager of the R&D center, fully responsible for the technology development of Brilliance Company, and concurrently served as the chairman of Oriental Hanfeng Automobile Design Co., Ltd.

From the time he came into contact with Brilliance to the official appointment, Zhao Fuquan spent nearly a year to understand the company, and finally decided to return to Brilliance. As Zhao Fuquan himself said: "The purpose of my return is for Huaxia to make my own car, and there are only a few car companies with Huaxia's own brands, and because Brilliance is located in Liao'an, I am also from Liao'an, so it is logical to choose Brilliance." ”

Zhao Fuquan adheres to the concept of "independent research and development, supplemented by external resources", "integration of resources, under the premise of mastering other people's technology, with the help of others' technology, for my use." ”

He believes that the current automobile research and development has passed the primitive stage of "proving that the wheels must be round", and many mature technologies can be used for me and can be used on the basis of learning and mastering.

Unlike many "returnees", Zhao Fuquan has a real and sober understanding of the domestic situation. In his opinion, many "returnees" have high requirements for hardware, and some foreign equipment must also have their own.

Zhao Fuquan's two years in Brilliance should be the most difficult two years for Brilliance Auto, and the company's management has undergone several changes; No new products have been launched in the last two years; Brilliance's performance has reached its lowest point.

In the two years when Brilliance Auto was up and down and suffered serious losses, the R&D team led by Zhao Fuquan gradually grew.

The R&D team has grown from dozens of people to more than 600 people at present, and Zhao Fuquan has also successfully planned the product line of Brilliance Auto, which launched Junjie in 2006 and several models that have been planned and completed since then, basically opening up the entire product line of Brilliance Auto sedan in the next few years.

Looking at Zhao Fuquan's experience in Brilliance, it can be said that this technical returnee has completed the transformation into a professional automotive manager in both theory and practice.

"As long as Brilliance does independent research and development, my value exists." When he first stepped into Brilliance, Zhao Fuquan was full of pride, but when Brilliance unswervingly took the independent route, he chose to leave.

In October 2006, without warning, Zhao Fuquan suddenly resigned. As for the reason, Zhao Fuquan adhered to the cào of professional managers, and never explained, let alone said that Brilliance was not.

After a short silence, Zhao Fuquan announced that he would join Geely. It is said that Li Shufu had long intended to invite Zhao Fuquan to join Geely, but failed to do so. It wasn't until Zhao Fuquan left Brilliance that Li Shufu finally got his wish.

Xiao Chen has five impressions of Zhao Fuquan. Impression 1: In just two and a half years in Brilliance, Zhao Fuquan has developed a variety of models such as Zunchi, Junjie, Kubao, Junjie FRV, etc., as well as 1.8T series engines. Among them, Junjie almost changed a company with one car, and won the "Local Brand Model of the Year" award selected by Suixian Daily Car World in the year of its launch. For a long time, Junjie has also become the most successful local brand model in China, and it is also the first local brand mid-level sedan that can compete with joint venture models.

Geely used to be a typical low-end and low-end model, but in later years, Geely completely transformed. Everyone was surprised to find that Geely almost has the most advanced automotive technology, the most standardized R&D process, and the most complete R&D system in China. Geely Panda has become the first A00 class car in China to receive a five-star C-NCAP safety rating, and the Emgrand EC7 has reached or even surpassed the joint venture cars of the same class in all aspects......

At the 2010 Beijing Auto Show, Geely's 3 major brands and 30 new cars, everyone wondered how Geely could do it in such a short time. Zhao Fuquan's answer was very simple: "Do it with your life!" He said very "modestly" that now that the models are all done, the traditional engines in 20 years will also be completed in the next 2 or 3 years. "The 1.3 and 1.3T will be put on the market next year, and the 1.5, 1.8 and 2.0 and 2.4 engines will be mass-produced in the near future. At the same time, next year, Geely's models above 1.8 liters will start to be equipped with DSI's 6AT - you know, many joint venture models are still using 5AT, or even 4AT. ”

"Geely's competitiveness is behind, and I am very confident in this." Zhao Fuquan showed his arrogant side.

However, Zhao Fuquan's achievements are much more than that. In his own opinion, he is even more proud of the fact that both in Brilliance and Geely, he has established a set of R&D systems for both companies in line with the world, suitable for China's national conditions, and with enterprise characteristics in the shortest possible time, and has brought out a team with special sè and performance. "In Brilliance, in less than 3 years, the R&D team has grown from 200 to 700 people; In Geely, in three and a half years, it has grown from 300 people to more than 1,400 now. These talents do not only belong to the enterprise, but also belong to the entire Huaxia automobile industry. ”

Xiao Chen's second impression of Zhao Fuquan is that at a press conference in 2006, Brilliance Chairman Shi Yùbō talked about recruiting talents around the world with high salaries, and he said: "For example, our Dr. Zhao ,......" Zhao Fuquan next to him immediately took over and said: "Divided by 8, it's not much." (At that time, the exchange rate of the renminbi against the dollar was about 8 to 1)

It seems that the salary offered by Brilliance is certainly not a high salary for Zhao Fuquan, who has become the research director of the DaimlerChrysler Technology Center, so why did Zhao Fuquan choose to come back when his career was in full swing?

Although the situation in Detroit was not bad at that time, Zhao Fuquan judged that the situation in China would be better. "Domestically, I think I can play a bigger role," he said. But it was not with sincerity to serve the country that he resolutely returned to the country. Zhao Fuquan said: "There is also a tug-of-war in thought. Because he was 40 years old at the time, his career abroad was at its peak, and the treatment was very good in all aspects; There are also family factors, such as children's education and wife's work, which are very practical problems. Therefore, from receiving Brilliance's invitation to finally making a decision, Zhao Fuquan hesitated for 10 months.

Why Brilliance? Zhao Fuquan smiled: "First, I am from Liao'an, and it is a natural thing to choose Brilliance; Secondly, Brilliance found me through headhunting, and some domestic companies approached me before, but there was no follow-up, only Brilliance talked to me more formally; Thirdly, Brilliance asked me to come back to be an independent brand, which is exactly my ideal, if I was asked to go to BMW Brilliance, I would not go. ”

"Don't write that!" As soon as he heard the reporter mention the word "serving the country", Zhao Fu was anxious, he said: "I just hope to do something." Anyone who has been working abroad for a long time has this desire. There are also those who have not returned, and it cannot be said that they are not patriotic. There may be some people who are content with the status quo abroad, but I am a person who is uneasy about the status quo, willing to toss, going abroad is a process of dreaming, and returning to China is also a process of dreaming. In addition, in foreign countries, the Chinese have a realistic Tianhuā board, the enterprise is too big, and the role of the individual is limited, and when it comes back, one person can change a lot of things. It's not a question of ability, I'm still me, but the stage is different. ”

On the one hand, he wanted to do something, and at the same time, he was conceited that he could do something, and Zhao Fuquan arrived at Brilliance. And Xiao Chen is not only not dissatisfied with his attitude of not mentioning serving the country, but rather appreciates it - Xiao Chen's point of view has always been: everyone does their own work well, which is the best way to serve the country, and it is never just shouting all day long, as if everyone else is a traitor except himself. So he thinks that Zhao Fuquan is a practical person.

Impression three, "Ah, Zhao Fuquan went to Geely?!" ”

In 2006, almost everyone in the industry heard that Zhao Fuquan left Brilliance and went to Geely, and their first reaction was puzzled, and then they may feel sorry for him. At that time, Geely not only did not have a joint venture scene, but also seemed to have stagnated compared with other local brands, and many problems accumulated in the early days began to gradually become apparent.

"Yes, at that time, the industry thought that Geely was not even a dark horse, Geely was just a catfish, and the catfish was destined to be transitional." Of course, Zhao Fuquan knew Geely's situation at that time, so he decided whether to come to Geely or not, and Zhao Fuquan took a longer time, a full year.

"I came back not to pursue the size of the stage, but to play my own value. The stage is big, the role played is small, and it is not interesting. In addition, my original intention to return to China was to do independent research and development, which should be clear. It will not change because the salary and rank given by others are higher. To be autonomous, you must also be able to make your own decisions. Geely has given me more autonomy. As for why he left Brilliance, Zhao Fuquan kept silent. He said that Hua Chen treats himself well. But "Zhao Fuquan does not belong to Brilliance, but to society." ”

Geely may have such and such problems, but in Zhao Fuquan's view, they are nothing. "It's because there's a problem that Geely, and if there's no problem, isn't it Toyota?" In his view, Geely has a very important advantage: "If the company wants to develop, it must have a clear long-term interest. If there is no this, it is easy to engage in short-term benefits, then the people who do research and development will be very tired, and there will be no results. In Geely, Li Shufu's interests are the touchstone, a fair and just weights and measures. ”

Although Zhao Fuquan said very vaguely, Xiao Chen's understanding is that as a private enterprise, Geely has institutional advantages.

Impression four, the first official "date", Lee asked: "How is Volvo?" Zhao replied: "Okay." Lee said, "How about we buy Volvo?" Zhao said, "Of course it's good." But I wondered, 'Why are you going to buy it?' Do you know how much it's worth?

What he never expected was that in the end, Geely really completed this beautiful cross-border merger and acquisition. If on the first date, Zhao Fuquan held the same prejudices and prejudices as most people about Li Shufu and Geely, then as he got to know Geely and Li Shufu deeply, he began to admire Li Shufu and his entrepreneurial team.

"After returning to China, I found that a person who has nothing can still build a car, this is the level!" Zhao Fuquan sighed, "I am now more and more aware that it is much more difficult to build a cheap car than an expensive car!" ”

From participating in the later acquisition of manganese and copper in the United Kingdom, to participating in the acquisition of DSI transmission company in Australia, and then to the acquisition negotiation of Volvo, Zhao Fuquan has played an important role, which also makes Zhao Fuquan, who has the ideal of "returning to China to play his role", very excited.

Zhao Fuquan now has a different view on Geely's early behavior that made the outside world criticize. For example, "cottage", Zhao Fuquan said, the ability is not strong, and I still want to do it, what if I don't "copycat"? In addition, the "cottage" is short and fast, and there are benefits, and no one will give you credit or awards if you are not a "cottage". Therefore, the "copycat" in the early stage of local brands is a last resort and a stage in development. "But, why don't you think Geely is a copycat now? Because we have the ability. ”

The progress of local brands has exceeded Zhao Fuquan's expectations before returning to China, and the domestic market share of local brand passenger cars has grown from zero to now accounting for about half of the country. I graduated from Xianglin University of Technology, and the teachers who taught me back then couldn't even drive a car. Now when I go back to my hometown, many of the cars parked downstairs are cars that I developed after returning to China! I'm very fortunate to be a part of this cause. It's not something you can do, it's an opportunity. ”

But he regretted that "on the one hand, consumers' acceptance of local brands is not enough, on the other hand, our ability to be independent is not strong, and we still lack the awareness and determination to make high-quality products." ”

Impression 5, "Although the words are dirty, they are all the truth-everyone knows that Mr. Zhao is more earthy." ”

Xiao Chen liked to watch the interview with Zhao Fuquan at that time. Because his answers are always simple and wonderful. For example, when questioning the slogan of "technical auspiciousness", he said that "a 20% discount can be called"; For example, when it comes to the relationship between the individual and the team, he says, "What's the point of people isolating you?" Don't talk about doing things, you will get stomach problems when you eat"......

Some reporters also said that when chatting with him, hours would always pass by in a flash, and he would never mix some English or use a quirky foreign accent when speaking, but always cào the kind of Northeast dialect with a strong Tieling style.

This Zhao Benshan's family and fellow of Tieling, this doctor who went abroad in 1986, and one of the automotive technology experts who are closest to his career among overseas Chinese, always say that he is dirty. But Xiao Chen's understanding is that his soil refers to reality, refers to being able to blend into the environment, and sometimes even "does not forget the roots" in it.

It is also because of this sincerity and reality that Zhao Fuquan is very popular no matter where he is. He is also very proud of himself, whether it is Brilliance or Geely, he can be recognized and accepted by the team.

"It's easy to recognize you, you're a doctor, but can they treat you as a buddy and not treat you as an outsider? In Geely, these veterans of Li Shufu call me brothers, which is what I am most proud of. It's easier in Brilliance, because everyone is from the north, and in Geely, I don't know what people say when they speak their hometown. ”

In Zhao Fuquan's view, it is very important to handle the relationship with the team. "The people below obey you, the people at the level support you, and the people above trust you, so that you can do things well."

When he first arrived in Geely, Zhao Fuquan did not encounter resistance, and when integrating the R&D system, it was inevitable that the interests of others would be touched, but on the one hand, the support of Li Shufu and Yang Jian eliminated a lot of mines for him, and on the other hand, Zhao Fuquan also had a strategy and did not step on Hu Luàn.

For example, product development is not a complete denial as soon as it comes, but a full affirmation of the achievements made by everyone's joint efforts before, and gradually won everyone's recognition. He didn't develop a new model as soon as he came, but made the vision 4 stars first. "As soon as I came up, I completely denied it, saying that these cars are not good, what's the point? Without the efforts of the old Geely people, without the 'old three' of Geely, how can there be today's Geely? ”

It is precisely because of this "soil" that Zhao Fuquan has taken root in the independent research and development of Huaxia Automobile and has borne fruit.

He is said to have five "most". The most proud: no matter where you are, you can always be recognized and accepted by the team; The second is to bring out a research and development team that can fight. The proudest: Back in Liao'an's hometown, many of the cars parked downstairs are self-developed cars. The most regrettable: After returning to China for many years, I only feel lucky, and I have no regrets. Panda does 5 stars, and there is no penny bonus, does this count? Most anticipated: Consumers can fairly accept local brands - everyone's awareness of local brands is now 7% off. The most emotional: Thanks to the reform and opening up, I would not go abroad without the reform and opening up; Without the success of reform and opening up, I would not have returned to China.

……

Xiao Chen shook hands with Zhao Fuquan with a smile, and then said to Zhao Fuquan, who was slightly restrained: "Mr. Zhao, the person standing in front of you today is not the deputy director of the National Development and Reform Commission, but the nephew of Ms. Xinlan Qin. ”

Zhao Fuquan breathed a sigh of relief and said with a smile: "Xiao ...... Sir, I see what you mean. ”

Helena said with a smile: "Since Shaodong has arrived, I, the plenipotentiary representative of Xinlan, can be regarded as giving up power, and I know more about high-tech technology, but the automobile industry is more blind, I will listen to it in a while." Helena now speaks Chinese quite well, I don't know if it's because she runs to the capital a lot, and even brings a little taste of Beijing films, which makes Xiao Chen sound quite smooth.

Su Ning smiled, and originally planned to say such a sentence, but suddenly remembered that Zhao Fuquan didn't know her relationship with Xiao Chen, let alone Xiao Chen, who was actually the behind-the-scenes boss of Tianxin Group to some extent, Helena could say that only Xiao Chen was the first to look at everything, but she Su Ning couldn't say this in front of Zhao Fuquan. In fact, Tianxin Group is completely Su Ning's enterprise in a legal sense, and it has nothing to do with Xiao Chen, but Su Ning always regards herself as Xiao Chen's spokesperson in Tianxin, and feels that as Xiao Chen's woman, she can help him take charge of some forces that are inconvenient for him to control, which is also a kind of happiness, so she is very satisfied with the current situation, if Xiao Chen really wants to ignore Tianxin completely, she will be lost and even sulked.

After the four of them sat down, Xiao Chen was the first to speak, and he said with a slight smile: "It's the end of 03 now, and it's 04 years now, I want to ask Mr. Zhao to talk about the competition pattern of the Huaxia automobile market first." ”

Zhao Fuquan nodded, thought a little, organized the language, and said quickly: "I have two views, the first point of view is: the overall development trend of the automobile industry is good. ”

Xiao Chen nodded noncommittally, smiling and motioning for Zhao Fuquan to continue.

Zhao Fuquan said calmly: "In recent years, with the sustained and rapid growth of China's GDP and the increase in domestic automobile consumption demand, China's automobile industry has developed rapidly and has become a pillar industry in China. The overall development momentum of China's automobile industry is very good, from the perspective of car ownership, from 1.78 million in 1980 to more than 23 million in 2003, with an average annual growth rate of 12%, higher than the GDP growth rate; The per capita number of cars increased from 1.4 per 1,000 people in 1978 to 18 per 1,000 people in 2003, an average annual growth rate of 13 per cent. From the perspective of automobile production and sales, the total production and total sales of automobiles in 2004 are estimated to exceed 5 million, and the production and sales volume will grow rapidly. From the perspective of automobile product structure, it has developed from a single medium-sized truck to a variety of series such as trucks, buses and cars, and the product structure of "lack of weight and lightness, and blank cars" has been basically alleviated and increasingly reasonable. The level of automobile products and manufacturing technology has been continuously improved, and several major groups and a large number of spare parts backbone enterprises have been built, including FAW, Dongfeng Motor, Dongfang, Linjing, Beijing, Ordnance and Aviation, forming a relatively complete product series and production layout in China. At present, the main attributes of automobiles have been transformed from the original means of production into consumer goods, and the main group of buyers has also changed from group purchases to consumer goods, and the long-term development prospects of the automobile market are promising. ”

Xiao Chen nodded slightly: "What about the second point of view?" "Now the Chinese market is generally optimistic, Zhao Fuquan's view is not new.

"The second point is that market concentration is characterized by a loose oligopoly. Market concentration is an important factor that reflects the market structure. The most common way to measure market concentration is to use the CRN indicator, which is measured by the cumulative market share of the largest companies in the industry to the overall industry market. Bain was the first to use this indicator to classify the types of industrial monopoly and competition in the United States.

Internationally, the automotive industry is a typical oligopoly, and the automotive industry is mainly dominated by about 10 conglomerates. Countries with developed automobile industries generally have two or three automobile enterprise groups monopolizing the country's automobile industry, such as GM, Ford and in the United States,, Volkswagen and BMW in Germany, and Toyota, Honda and Nissan in Japan.

There are more than 100 automobile manufacturers in China, which exceeds the number of automobile manufacturers in the United States, Europe and Japan combined, and it looks like a competitive market in terms of the number of enterprises. However, from the analysis of market concentration, although there is a certain gap with the developed countries in the automobile industry, the concentration phenomenon is still relatively obvious. In the first half of 2001, it can be seen that the sales, share and concentration data of China's major automobile manufacturers show that CR4 is 50.12%, and CR8 reaches 74.40%, and the concentration is relatively high.

In 2003, the sales, share and concentration data of China's major automobile manufacturers can be seen that CR4 was 58.58%, CR8 reached 76.05%, and the concentration was further enhanced. This market structure can be considered a loose oligopoly market. The so-called loose oligopoly market refers to: the market share concentration of the top four enterprises has reached more than 40%, but the market structure of the price cannot be conspired to set prices, that is to say, the number of manufacturers is large - in 2003, there were 117 automobile manufacturers in the country, none of which can monopolize the market price, and the first enterprise in 2003, FAW Group, only occupied 19.88% of the market share, which is not enough to control the entire market. ”

"Control the market?" Xiao Chen frowned slightly, not dissatisfied, but thinking, and after a while, he continued to ask: "Then what does Mr. Zhao think, how is the game of competition in the Huaxia automobile market?" ”

Zhao Fuquan thought for a moment before slowly saying, "Mr. Xiao used the word 'game' well. The essential characteristic of corporate behavior in an oligopolistic market is the interdependence of its behavior. Due to the limited number of companies in the market, each company must consider how its actions affect its competitors and how to act on their reactions while determining their own production and prices. In other words, a company's profits depend not only on its own decisions, but also on the decisions of other companies. Therefore, when analyzing the decision-making behavior of enterprises in the oligopolistic market, it is inevitable to use the idea of game.

According to the classification of whether the participants cooperate with each other, the game can be divided into cooperative game and non-cooperative game. Price competition in the automotive industry is non-cooperative competition because there is no binding agreement between them, so they will compete according to their own interests.

Manufacturers' non-cooperative competition strategies can be divided into two main categories: price competition and output competition. The theoretical model describing price competition is represented by Bertrand's model, and the theory of descriptive output competition is represented by the Cournot model. I predict that from 2004 onwards, the relationship between supply and demand in the automobile market will undergo fundamental changes, from a seller's market to a buyer's market, and the inventory of automobiles will continue to increase, so the current competition in the automobile industry is mainly a competition of price, rather than a competition of output.

Due to the lack of independent innovation ability of most Huaxia automobile enterprises, the homogenization of automobile products is serious. We can assume that auto companies provide undifferentiated products, so what kind of situation will the oligopoly market in the auto industry form from the perspective of game theory? In the process of the game, each automaker has two strategic choices: price reduction and no price reduction. Although each automaker cannot know the actual strategic choice of the other party when making price decisions, it cannot ignore the impact of the other party's choice on itself, so it will consider its final choice according to the two possible decisions of the other party. For illustrative purposes, let's assume a situation where there are only two competing players in the market, i.e., a duopoly pattern. ”

Speaking of this, Zhao Fuquan took out a stack of materials from the document bag, and selected a document from it, there was a table on it, Zhao Fuquan put the form on the coffee table to show Xiao Chen, and said: "By comparing the payment levels of each table in the payment matrix, it can be seen that the duopoly is in a dilemma similar to the prisoner's dilemma. Now let's analyze the strategy of oligarch A, assuming that oligarch B reduces the price, then, the benefit of oligarch A's strategy of reducing the price is 5, while the benefit of his strategy of not reducing the price is only 2, therefore, oligarch A will adopt the strategy of reducing the price.

Assuming that oligarch B does not reduce prices, then the benefit of oligarch A's strategy of price reduction is 18, while the benefit of his strategy of not reducing prices is only 10, in which case oligarch A will also adopt the strategy of price reduction. In the same way, we can analyze that oligopoly B will also adopt a strategy of price reduction. Therefore, the final result of this game must be that both oligarchs adopt the strategy of price reduction, with a return of 5 each, (price reduction, price reduction) constitutes a Nash equilibrium, and it is a dominant strategic equilibrium.

Obviously, this is not the best interest option for both parties, both of whom will receive smaller profits, and the beneficiaries are the consumers; For car manufacturers (no price reduction, no price reduction) is the best solution, so that they can get a large profit, but this result is not possible, it is not a Nash equilibrium solution. Therefore, in real life, in the face of changes in the market situation, many automobile manufacturers have adopted the method of reducing prices to expand sales and reduce inventory, which makes the price war in the automobile market continue to heat up. Relative to the price, the cost of automobile companies is rising, due to the strong demand for steel in the world, the shortage of supply, coupled with the rise in domestic water, electricity and coal and other energy prices, which makes the profits of automobile companies continue to decrease. ”

This sounds a little sad, at least Helena frowned, she doesn't care about the establishment of the Huaxia automobile industry system, she only cares about whether her owner can make money. However, Su Ning knew that Xiao Chen had always had the heart to engage in cars, so she looked down on profits, but seeing it lightly did not mean that she could accept operating at a loss, so she frowned slightly.

Only Xiao Chen was satisfied with Zhao Fuquan's straightforward words, he nodded, and said with a slight smile: "Mr. Zhao's analysis is very reasonable. Excessive price competition is detrimental to the development of the industry. Although the state protects competition, it does not mean that the state unconditionally agrees with price competition, and price competition must be conducive to economic development and the long-term interests of the people. Recently, we can feel from all sides that the state is worried about the possible excessive price competition in the automotive industry. There are already signs that the state has regulated and controlled the number of enterprises entering the automobile industry by standardizing consumer loans for automobiles and strictly controlling the number of enterprises entering the automobile industry. National macroeconomic regulation and control is one aspect, and more importantly, automobile companies should also take measures to change the prisoner's dilemma, jump out of the vicious competition of price wars, avoid the automobile industry to take the old road of VCD war and color TV war, and avoid the automobile industry from entering the dead cycle of 'price reduction - loss'. ”

This sentence is said by someone else, it is called market analysis and analysis of the official mentality, but it was said by Xiao Chen, the deputy director of the National Development and Reform Commission, so it can't just be seen as such, it may represent the official trend - even if Xiao Chen said that he is not here today as the deputy director of the National Development and Reform Commission.

"In the face of such a situation, what is Mr. Zhao's trick to return to Chūn?" Xiao Chen asked with a slight smile.

Zhao Fuquan said with a smile: "There are no magic hands, but there are two stupid methods." ”

Xiao Chen also smiled, but did not interrupt, so Zhao Fuquan continued: "The first is differentiated management. Through Bertrand's paradox, we know that the price reduction behavior of one party will inevitably lead to zero profit for the other party, so the end result of the price war will be the cost war. If the unit cost is different, the low-cost enterprises will eventually occupy the entire market, and the high-cost enterprises will be eliminated. If the unit costs are equal, in the equilibrium case, the price is equal to the marginal cost, and the corporate profit is zero, as in the equilibrium case of a perfectly competitive market. One of the ways to solve the Paradox is to introduce product differentiation. If there are differences in the products produced by different companies, the elasticity of substitution will not be infinite, and consumers will have different preferences for the products of different companies, and price is not the only variable they are interested in. The equilibrium price is not equal to the marginal cost when there is a product difference. Therefore, vigorously carrying out technological innovation, segmenting the target market, and achieving product differentiation is a countermeasure to break the vicious price competition. Of course, in real life, the differentiated operation of the automobile industry should not only be limited to product differentiation, but also should shift the key to winning the competition to the service, customer-centric, to achieve service differentiation, for example, extend the warranty period or warranty mileage, carry out relevant quality and service commitments, car refurbishment, car financing, emergency assistance, information consultation, etc. ”

Xiao Chen nodded: "Yes, the iron has to be hard, this method is a stupid method, it is indeed a stupid method, but it is the way of the king, and it is upright." ”

Zhao Fuquan saw that Xiao Chen supported him, and he was more confident: "The second one is also related to the first, that is, brand management." The brand represents quality and taste, and ultimately embodies the business philosophy of the enterprise. In the automotive industry, brand loyalty is one of the core competencies of almost all multinational groups. J., an internationally renowned automotive industry research company, conducted a survey on the "customer return rate" of the world's leading automobile brands. It was found that successful brands are largely relying on their strong customer brand loyalty to maintain market share. In China, it is still in its infancy for automakers to build customer brand loyalty. The establishment and maintenance of a brand must be based on stable and continuously improved quality. Quality defects are fatal to a brand. Conversely, high reliability allows automakers to offer higher prices and achieve desired customer satisfaction, while also reducing warranty costs. Therefore, automobile companies should strictly monitor the quality in the entire process of research and development, supplier selection, production and assembly, channel distribution and after-sales service, so as to provide customers with products with superior performance and high cost performance. ”

Zhao Fuquan stared at Xiao Chen: "I hope that Chrysler and its high-end luxury brands can cooperate with our Tianchen Automobile to drive our brand creation." Of course, at the same time, I want to go to Tianchen Automobile, we must not just rely on the joint venture with Chrysler, we must build our own premium brand. Although Chrysler is about to become Ms. Qin's industry, it is an American brand after all, and even an American symbol, what we Tianchen Automobile wants to do is a real independent brand, an independent brand that can support its important position in the global automobile industry. If Mr. Xiao can agree to these two points, I will immediately resign from Chrysler and become CEO and president of Tianchen Automobile. ”

Xiao Chen laughed, suddenly stood up, and took the initiative to stretch out his right hand: "This is exactly what I need." ”——

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