On The Market Competition In China Auto After Market Analysis

From the aspect of competition in the industry, business competitors are:

1. manufacturer: means existing within the industry and enterprises ' production and other manufacturers of the same product or service, they are the direct competitors of the enterprise. For example, currently, 4S, 4S shop between stores and auto repair shops, between 4S shops are direct competitors with car beauty shops.

2. potential entrants: when an industry Outlook, is profitable, attracting new competitors, so that adding new production capacity, and carve up the market share and the main resources. In addition, large enterprises often use some diversification of its resources from one into another. New companies to join, will likely lead to lower prices and cut profits.

3. alternative manufacturers: with a product having the same function and other products to meet the needs of the same nature, belongs to the alternative. If the price of a product goes up, would result in increased demand for alternative products. For example, gasoline prices would encourage car buyers to buy new energy vehicles such as electric cars, as gasoline and electricity are products that can be substituted, despite differences in their natural form. As another example, bamboo charcoal car perfume of natural forms are different, but have to improve the car interior smell and, therefore, belong to the two alternatives. With the development of science and technology, alternatives will be more and more, an industry of all enterprises will be faced with production alternatives competing companies in other industries.