FAW_Hubei Branch_0308.docVIP免费

FAWTradingCo.HubeiBranchINTERVIEWDATE:March8th,2000INTERVIEWERNAME:AnneWangIntervieweeNameMr.JiaoYoulinPositionManagerCompanyandAddressMeiguiGarden,ErQiaoWest,HanyangDistrictTelephone/Fax(027)84617524/84617784BackgroundKeyProcessesKeyIssuesConclusionBackgroundHubeiBranchisestablishedin1990.Theyrecentlymovedtheirofficefromdowntowntooutskirtsduetothelimitationofoverheadbudget.Mr.JiaowasaplannerofHubeiBranchinthepasttwoyearsandnowpromotedtobemanager.CurrentlytherearethreeemployeesworkingforHubeiBranch,including1manager,onesalesmanandoneservicerepresentative.FacingthedirectcompetitionwithSAW,FAWmarketshareinHubeiisverylow,andkeepsdecreasingslightlyrecentyears.TruckChassisOthers1997Total2700(includingtrucks,chassisandcars)1998Total1000(includingtrucksandchassis)19991002-Ton-King<600200buschassis2000(Plan)Total120055trucksfromQingdaoFAWPlantThereis6dealersWuhan,oneofthemisexclusive.Those6dealersalloweFAWhugedebt.FAWlauncheslawsuitforShiyanandXiangfanDealerstogetbackFAW'sdebt.Thereare12servicestationsinHubei,2inWuhan.Mostoftheservicestationsarestate-ownedandarelosingmoney.OnesparepartscentreislocatedintheoutskirtsofWuhansoastosupplyforadjacentprovincesaswell.1KeyprocessesMajorresponsibilityofFAWHubeibranchincludes:Preparereportsofinventory,salesprogressmonthlythroughfaxVisitcustomersanddealerstocollectinformation,especiallythatofSAW's.SuperviselocaldealersoperationandchasethemtoreturndebtstoFAWCoordinatesalesandpromotion:utilisesFAW'sadvertisementfeetodopromotiontogetherwithlocaldealers.SalesofQingdaotrucksnowbelongtoFAWHubeiBranchnamely.OriginallyJiulongistheonlydealerofQingdaotrucks.TheygetQingdaotrucksinreturnforthesparepartstheysuppliertoQingdao,andthatpriceislower.Currently,HubeibranchputemphasisonQingdaotrucksasit'sverycompetitiveincost.JiulongisaskedtosellalltruckstoFAWHubeiBranchforthemtoredistributeandsell.Sparepartscenterisaseparatelyoperatingbusinessunitandthuscan'tbecontrolledbyFAWbranchestocoordinatepartssalesindifferentregion.KeyIssuesDealernetworkMostofthedealersareSOEsandlackflexibilityindealingwithcustomerrequests/HumanresourceissuesDealerswishtorestructuresoastogainmorefreedominbusinessoperation,butthereisalotofdebtconcernedthattheycan'tgetridof.Dealernetworkconstructionisirrational:mostdealersareinWuhanwhileothermarketsarekeptblank.LimitationonsparepartssupplyPriceofsparepartsinpartscenteriswaytoohightoprovideanyprofittoservicestations.Numberandspeciesofpartsareneversufficient.LocationistoofarawayfromWuhanCity.Difficultiesforservicestations:Capitalinadequacyfornewtrucksales,FAWdoesnotprovideanysupporttothemaswell.Alotofinventoryisconsideredasobsolescence,thusserviceprovidersareshortinworkingcapital.MarketsizeofFAWtrucksistoosmalltomakeprofit.DebttoFAWAlmosteverydealersinHubeiowedFAWalotofdebt,totalnumberreaches60-70MillionRMB,50%ofthemareconsideredpotentialbaddebt.2Mr.JiasuggeststhatFAWcanchangepartofthedebttoinvestmenttodealersasakindofsupport.CompetitioninlocalmarketwithSAWSAWandFAWtrucksaresimilarinbasictypes.However,therearesomeproductsFAWhasadvantages,suchas9-tonTwinBridge.PartsandservicesupplierisfarfromsufficientcomparedwithSAW.Localprotectionpoliciesareissuedinvariousways,sometimesevenadvertisementwillbeforcedtocancelbyHubeigovernment.MostendusersareinclinedtoDFtrucksfortraditionalfactors.SolutionforFAWinrecentyearsChassiscanbeanimportantsourceofprofit.FAWwillselldifferentchassistolocalrefitplants.Qingdaotruckscanbelowerinpriceandstrongincompetitionposition.RuralareaslikeHuangyan,Huanggan,etcarekeptblanduptillnow.Somebig,corporatecustomersarenotcontrolledbylocalgovernmentandareinneedoftrucksforengineeringusageLackoftrainingtoFAWBranchanddealersfornewproduct/ThoughFAWbranchdidmarketresearchesregularly,thereisnoadvanced,efficientwaytoanalyseandsummarisetheinformation.LocalbranchistightinexpensesotheymovedtooutskirtsofWuhan.Currentlytheyputofficeintheirdormitorysoastoreducethecost.ConclusionsThoughHubeimarketisnothighinsalesreturntoFAW,it'sofstrategicimportanceasitpushesFAW'sbattlefieldforward.However,ifFAWwantstokeeptheHubeimarketopen,somespecialpoliciesneedstobeappliedthere.3