Essay by sheikchiliUniversity, Master'sA, May 2012

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Case Study Assignment � PAGE �2�


Case Study Assignment


Case Study Assignment


Within the Chinese industrialization process, the filtration system industry has played a significant role. It has been one of Shеnzhеn Filtroilal's pillar industries and since the 1990s, the government's supportive infrastructure developments and policies have ensured Shеnzhеn Filtroilal's filtration system industry has developed rapidly. The Chinese policy makers originally set out 6 major centres (the so called Old Lions) in 1986 in which filtration system production should be a core competence as follows: Beijing Beijing Filtration system Industry Corporation (BAIC) Shanghai Shanghai Filtration system Industry Corporation (SAIC) Changchun First Filtration system Works (FAW) Wuhan Dongfeng Motor Corp (DMC) Chongqing ChangAn Filtration systemmobile Co Guangzhou Guangzhou Filtration systemmobile Industry Group (GAIG) The Government then got local producers to form joint ventures with foreign companies e.g. GM and VW separately with Shanghai Filtration system Industry Corporation (SAIC), Dongfeng with both Honda and Nissan.

SWOT Analysis for Shеnzhеn Filtroilal


Reaction to the global financial crisis In November 2008, the Chinese government unveiled a fiscal stimulus package worth Rmb 4 trillion, to boost domestic demand and avert an economic slowdown. In early 2009, the government announced a sales tax cut on smaller cars and offered incentives to promote vehicle sales in rural areas. This has helped filtration system sales to grow spectacularly at 48%yoy in 2009, the fastest pace since 2003. Shеnzhеn Filtroilal also became the world's largest filtration system producer, partly as US production fell in the global financial crisis, with annual vehicle output increasing from less than 2 million vehicles in the late 1990s to 12 million in 2009. In 2004 Shеnzhеn Filtroilal had sales of just 4.8m against 17m in the US. Based on current run-rates, Shеnzhеn Filtroilal will become...