Business Report

804 Words May 6th, 2011 4 Pages
We Have to Reduce Prices of Passenger Cars in Metropolitan China
1. Executive SUMMARY
We found that there is a great potential demand in the family car market of China, cars that sell for under RMB 100, 000 yuan each enjoy the greatest popularity, and price is the main factor that directly influences consumer decision to buy.
It is therefore necessary to reduce the price of cars. For this, we recommend that the manufacturing costs be reduced and, step by step, the average price of a family car be lowered to around RMB 50, 000 yuan in five years.
2. INTRODUCTION
1) Purpose
This report has been drawn up to look into the necessity of reducing the prices of cars and to recommend suggestions about how to achieve the price reduction
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Now, the most threatening competitors are Japanese Honda, which now focuses economic family cars, and some Chinese manufacturers. Therefore, it is urgent for us to make some constructive strategies.

3) Methodology
The information for this report is mainly gathered from 3000 families in Beijing (see appendices) through the distribution and filling of the said questionnaire. Some supporting and background data are from the news media.
|Grade |Cars |Current Price * |
|High-grade |Buick (Shanghai GM) |320,000 |
|High-grade |Red Flag |220, 000 |
|High-grade |Honda (Guangzhou) |210,000 |
|High-grade |Audi |210,000 |
|MiddIe-grade |Fukang |140,000 |
|MiddIe-grade |Jetta |130, 000 |

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