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A few years ago, in order to solve the problems of sales and after-sales service, Qixiang Automobile established such dealerships integrating sales and after-sales service in big cities such as Songjiang, Jinling, Guangzhou, and Tianjin.
However, their model is more of a model project, which is only done in big cities, but not in small places. After all, there are too few customers, and the cost of setting up this kind of car dealership is relatively high.
It's so big that it's hard to recover the cost.
But Feng's Automobile is different. They directly plan to set up one in all cities above the state capital!
The reason why Feng's Automobile Company made this choice is naturally because they are optimistic about the automobile market. The market will continue to grow in the future, which will be enough to offset the cost of establishing a national sales and service channel.
In addition, they have another very important reason. In fact, apart from the stable appearance and relatively good ride comfort of Mercedes-Benz cars, other aspects, such as price, performance and failure rate, are actually average.
To put it mildly, it’s just superficial!
In order to compete for the market and ensure sales, they plan to work hard on service!
Do you want to buy a car? When you come to a car dealership, you are like the boss. A group of people will serve you and provide all kinds of considerate services. After buying a car, does it break down and need to be repaired? Just bring it to the car dealership and we will repair it directly for you.
If the car breaks down and can no longer run, we have a specialized maintenance vehicle that can be sent out.
In short, it solves all the problems of customers!
If it can't compete in terms of hard conditions, Feng's Automobile Company can only compete with these softwares. Even if these softwares will cause a short-term decline in the company's overall profits, who knows in the future.
Besides, repairing cars can also make money. In the past, when people’s cars broke down, most people would find a master to repair the car outside, or if they were good at it, they would do it themselves. Now we are trying to bring in the car repair business, isn’t it?
Aren't you making money on both ends?
In order to carve a niche in the automobile market, Feng's Automobile Company used various means.
From the huge investment in capital and technology to the overwhelming publicity and support from the headquarters, it can be said that the headquarters of Fung Shipping Company has given all the support it can to its automobile subsidiaries.
This shows that Feng Shipping Company attaches great importance to the automobile business.
As the competition in the shipping market becomes fierce, the competition in second-line businesses such as shipbuilding, steel machinery, etc. is also extremely fierce. Fung Shipping Company urgently needs to find a new business to provide growth points.
It is best to be one that can simultaneously drive other industries under Feng Motors Company.
The automotive industry falls into this category!
Feng's Automobile Company uses a large amount of steel to manufacture cars, and the various spare parts used are also products of Feng's Machinery. Even the wheels and car glass, although not their own products, are also made of Feng's Machinery.
Products from partner manufacturers.
After the cars were produced, all transportation by sea or river was handed over to Feng's own freight company.
If the automobile business can be developed, it can directly drive the growth of its other businesses, just like the shipping business.
This is the fundamental reason why Feng Shipping Company entered the automobile industry with great fanfare!
What they want is not only the automobile market itself, but also the growth of other businesses driven by the automobile market.
This is also the characteristic of Feng's shipping company's business. What they pursue is industrial connection to open up the industrial chain, reduce costs and gain greater competitiveness.
In some businesses, there may be little profit or even loss, but in some businesses, it is very profitable.
Today, Fung Shipping Company takes shipping business as its core and has built many seemingly unrelated businesses such as steel, machinery and equipment, chemicals, shipbuilding, and mining.
Among many businesses, many businesses are actually only second-rate, and a very few can barely be considered first-rate. In fact, most of these companies do not make much money, or even lose money, especially their steel department, which loses money every year...
In today's economic environment, it is very rare for a steel company to be able to lose money every year.
But their shipping business makes money!
To a certain extent, Feng's Shipping Company actually uses a large and comprehensive approach. Many businesses seem to be unprofitable, but in fact this is just a matter of internal accounting calculations, and overall it is still very profitable!
This large and comprehensive business model has caused many companies to imitate it, but many companies also dislike this model.
Because this business model seems to be large and comprehensive, but it is easy to allocate funds and technology, eventually leading to a situation where everything is available and nothing works.
Fung Shipping Company is so strong that it can only be at the top level in the shipping business. Most of its businesses are only in the second or even third tier. Without the entire system of Fung Shipping Company, it is estimated that it will not be able to survive alone in the market.
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However, Feng's Shipping Company has suddenly started to do business, and it is getting bigger and bigger.
This very special model is the only one in Datang. It would be difficult for other private companies to imitate it because it requires too high funds and strength.
But, what, if Feng Shipping Company reaches the top level in several industries in the industrial chain involved, and even occupies a large market share like the shipping industry, it will probably be sued in court for illegal competition.
There is no anti-monopoly law in the Tang Empire. After all, the Ministry of State-owned Enterprises is the largest monopoly company. Many of its state-owned enterprises are veritable monopolies, or they simply compete with each other, especially in industries such as national defense, heavy industry, and people's livelihood...
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Railway, there is only one Datang Railway Corporation!
Steel, Jiangnan Iron and Steel Company and several other steel companies affiliated to the Ministry of State-owned Assets occupy more than 90% of the market share.
The largest and largest supplier of machinery and equipment in the empire, Zhaoqing Machinery Company is a wholly-owned enterprise owned by the Ministry of State-owned Enterprises.
Not to mention mining, which is also controlled by the Ministry of State-owned Enterprises.
Even in the shipping industry with private giants like Feng Shipping Company, among the top three shipping companies, in addition to Feng Shipping Company, the other two are Yangtze Shipping Company and Pacific Shipping Company, but they are all state-owned enterprises.
All assets.
Therefore, it is impossible to engage in anti-monopoly. You can’t slap yourself in the face!
However, the Tang Empire had laws related to illegal competition, malicious competition, etc. The effect was actually similar to that of anti-monopoly, which was to curb and avoid illegal and vicious competition in the market.
Therefore, except for a few livelihood industries such as food and railways, even in the national defense industry, the Ministry of State-owned Enterprises has established three major arms companies to let them compete with each other to prevent one from becoming dominant.
The same applies to steel, petroleum, chemicals, machinery, finance, etc.
The Tang Empire rarely established a dominant company in a certain industry, unless the industry was directly related to people's livelihood and the survival of the empire.