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The Industry Barrier Of Car Models

Dec 04, 2017

Barriers to entry into the industry are mainly authorized, research and development design, sales channels and marketing, specific analysis as follows:

1. Authorization

Enterprises to carry out the production of car models first need to obtain the authorization of the automobile manufacturers, and the licensing conditions of the automobile manufacturers are more stringent, the overall quality of the car models are very high requirements.

The automobile manufacturer first requests the applicant to have the strong research and development design ability, production technology level, quality control system and a sound social responsibility system to maintain the brand reputation of automobile manufacturers; second, the applicant has a good sales channels and marketing capacity to ensure that car models have a larger sales and market share.

Generally, the well-known automobile manufacturers will choose the best car models in the world, to carry out long-term and stable strategic cooperative relations, to the brand building and market promotion of automotive manufacturers to form a long-term good help.

2, research and development design

The design and development of car models must undergo the outside observation number, the appearance streamline design, the structure design, the electronic design, the craft design, the mold design, the special fixture design, the packing design and so on multi-channel procedure, the development stage hand and the sample vehicle all need to pass through the automobile manufacturer to be able to enter

Therefore, product development capabilities, product design quality is not only related to the sample car can be approved by the car manufacturers, but also related to the product's subsequent production costs, product quality and the stability of the cooperation between the two sides.

In addition, as new cars are constantly being developed, the speed of product design and development is also one of the factors that determine whether an enterprise can enter and continue to develop within the industry.

3, sales channels and market promotion

New entrants are generally unfamiliar with international and domestic models of model sales and marketing methods, but also lack of a good network of sales channels.

Generally speaking, the new entrants to establish a sound distribution network channels, enhance the market promotion capacity of a longer period, it is difficult to achieve a good sales performance and profitability in a short period of time, thus affecting their continued business in the industry.