The company wholesales products to some automobile tire retail stores and auto repair shops, and provides related technical support services to retailers. The two products represented by the company are world-famous brands, mainly aimed at some high-end cars. From the perspective of business development, enterprises are mainly concentrated in the northern part of Beijing, and customers are mostly concentrated in areas with higher consumption grades. At the same time, the product is not designed according to the speed level and pattern required by different models.
In the next few years, the competition of different brands and the influence of cross-regional sales of the same brand will make the market competition more intense. Because it is still a consumable after all, and the government is encouraging individuals to buy cars, some institutions also provide convenience for individuals to buy cars, such as using installment payment. This means that there will be more and more vehicles, and with the progress of science and technology, the performance of cars will get better and better. The quality requirements for tires and engine oil are getting higher and higher. Now the road construction in Beijing is not accelerating. For example, the opening of the Fifth Ring Road and the transformation of the Third Ring Road have made traffic more convenient and provided a good prospect. However, with the continuous expansion of product market share, there will inevitably be price competition, sales are increasing, but the profit growth is not obvious, and the profit per unit product is declining.
At present, the main competitors faced by enterprises are World 1: Mijulin Tire, a well-known brand, and another dealer of the same brand in the same region. As far as Michelin tires are concerned, the division of functions between Beijing office and dealers is quite clear. It works closely with distributors in the process of market development. For example, when the dealer's business personnel develop customers, the regional salesmen of Michelin office will also participate in it, so as to know the customers' opinions in time and feed them back to the company.
According to different customers, we will assist the dealer's business personnel to do some follow-up work, help to invite the advertising signs in the store to the office, and send some promotional materials regularly and selectively. This can shorten the working cycle, improve efficiency, not only make Michelin intuitively understand the market, reduce the work pressure of dealers, but also quickly solve problems other than sales and reduce intermediate links. Mijulin tire is still relatively good in regional sales and price control. Although the market share is not very high, it can maintain a certain level of profit. In the past few years, it has steadily increased its market share and established a good brand image.
Although it is comparable to some brands such as Goodyear in the international market, it gives customers a higher feeling in terms of price and image in Beijing. Michelin tires are also technically improved according to the road conditions in China, which can better meet the requirements of customers, and are slower than Goodyear tires in terms of production capacity and new product development. In the long-term competition, because of good service, high market positioning. This makes the profit in the long-term contest have no influence on people, and also because the profit of many brands in the towel field competition is already very low. The sales of Goodyear tires in another dealer in Beijing are not very large. Because he also represents another brand of tires, which can ensure that the company has a certain profit. He will first launch a price war for Goodyear tires among some customers of this brand. Because each retail store does not only sell a single brand of spleen tires, it will take this way to quickly occupy the market.
But there will be great pressure to represent two brands of tires at the same time. If a well-funded competitor enters this price war, it will be difficult to support growth due to insufficient funds.