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Discussion Starter · #1 ·
We all know that to rely only on low price isn't a good idea..but then, my question is:
What's the factor that can let the chinese invasion in us and european market?

Perhaps Chinese VM's should try to develop a new technology, something that doesn't yet exist or not well yet marketed ( hybrid )...

here it is a piece of an article from asia times online "low cost isn't everything"

.................If China's automobile industry is to achieve the same measure of success as Japan's, it must offer the global community something it does not already have: a technology or product with a deliverable and quite tangible benefit that other auto manufacturers have overlooked. It will not be enough for China simply to make an equivalent to an Isuzu SUV at half the price. Both inside and outside the auto sector, Chinese manufacturers must innovate, or any growth they do experience will ultimately be short-lived and cannibalistic.

Without innovation, competitors will be doing exactly what the Chinese do, and both will be forced to compete only on price. If this happens within a market, it will further de-emphasize the potential for innovation because companies cannot afford to invest in research and development when their margins are eroding. Most troubling is the idea that the potential for China's contribution to the world could be stymied as a consequence of too many business models focused purely on price and not on innovation.

The irony that much of the Japanese competitive strength in the automobile sector was predicated on ideas that were uniquely American in origin has been lost on most people. Culturally, the Japanese mindset and approach to business easily accommodated a mastery over details other business cultures deemed too trivial and unimportant to track. The culture that saw intense beauty in the intricacies of a finely landscaped garden or miniaturized bonsai tree was ideally positioned to see similar depth and nuance in the mastery of those quality-control details that others were unwilling to pay close attention to.

In a similar way, the ultimate realm of competencies that China will develop will doubtlessly build on ideas that already exist, but whose adaptation has not yet gone forward because the ideas do not fit within the way other companies and cultures approach business. Within this realization lies much of the paradigm-shifting potential for China. Its success may ride on the back of a similar adoption of undeveloped, unapplied and unappreciated concepts of doing business.

More likely still is that as the growth of China continues it will be able to shake loose of entire technology paradigms and launch into areas of development not yet conceptualized. As just one example, the uniquely Chinese solution that unfolds in the automobile market may incorporate entirely new technologies that circumvent the established means by which people transport themselves in Europe and the Americas.

More practically still, there is a historical lag between the invention of an automobile safety feature and the time that it becomes available for consumers. Existing but unexecuted solutions may provide incremental opportunities for a particular Chinese manufacturing sector to establish the worthiness of its own products, ideas and thereby its brands.

In the US, the automobile has become a cultural icon or, at the very least, a somewhat adolescent fixation. The American ideal of personal freedom is innately tied to the autonomy afforded a person with a car, representing his very real opportunity to go anywhere he likes, at any time he wishes. Within China, the automobile represents the broader ideal of progress. But because the archetype of the automobile is somewhat less clearly formed in China, the potential exists for new technologies that significantly change a part of the driving or auto-ownership experience to be accepted.

Couple this potential for easier adaptation of new technology with the cultural ability of the Chinese people to appreciate the need to think collectively, and the opportunities for new advances in personal transportation exponentially increase. Within a still-developing country like China the significance of personal transportation, and the untapped creative potential of its business people and technicians, coupled with its openness to new technologies, the opportunity to introduce an entirely paradigm-shifting technology is in many ways greater than now exists in the US and Europe. But as Jiangling's experience has shown, such market-shaping greatness will not be found on price alone.

What's your opinion?
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