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There are different "leaders" companies in each sub-divisional field. It is worthwhile for us to take stock and think about them. Especially the core figures of these companies deserve our attention. Their thinking determines the strategy of their company in the Chinese market, and their thinking changes affect the company's progress in the Chinese market.
Lexus CT200h
With CT200h listing more than 3,000 vehicles in two months, Lexus saw the effect of the change.
In 2011, Lexus sold more than 55,000 vehicles in China. Although the Lexus's small growth could not be easily affected by the earthquake in Japan, Lexus has felt the pressure from the German luxury car rivals.
Nozaki Matsusaka served as executive deputy general manager of Toyota Motor (China) Investment Co., Ltd. in 2010. As Lexus' most senior person in charge in China, he proposed a strategy of innovation and change, and strived to change the product layout of Lexus' large-displacement vehicles.
Although he speaks a less fluent Chinese language, Matsuzuki Nosaki hopes he can listen more to the true feedback from the Chinese market.
“2011 is the SUV year and 2012 will be the Lexus hybrid year.†Borre Lexus’s sales representative is working hard to sell Lexus CT200h to customers, which is the most inquired car in the 4S store in Beijing’s South Fourth Ring. one. In addition to the low-emission models that Lexus sells hotly, some other large and medium-sized vehicles, many consumers believe that the pricing is too high and the market response is not positive.
Previously, the pricing of most Lexus models has not been as loud as its German counterparts listening to localized voices. Japanese headquarters and even the US consumer habits are affecting the development of Lexus in China. CT200h is the first change. Nozaki Matsusaka acknowledged that the starting price of 279,000 yuan is fully based on the opinions of Lexus China, which is one of the most important changes in the Lexus' decision-making system.
Nozaki Matsusaki is trying to establish Lexus, a luxury car brand that was born in the US market in 1989, to lay down its position in the Chinese market to seek more market share. In 2012, Lexus’s growth goal was 50%.
CT200h Pricing Coordinates At the end of October 2011, the Lexus CT200h hybrid model was officially launched in the country with an official price range of 279,000 to 445,000 yuan.
This is the first Lexus product in China with a minimum price of less than 300,000 yuan. Although Mercedes-Benz, BMW, Audi's products have already entered the 300,000 yuan range, this is still a rare breakthrough for Lexus.
Nozaki Matsuo introduced, "This price was developed specifically for the Chinese market after a long-term market survey. The headquarters of the pricing process fully considered Lexus China's opinion."
From the market feedback of CT200h, Lexus’s pricing strategy was quite successful. In the two months since its listing, orders have exceeded 3,000. Not only has it obtained a considerable number of orders, but more importantly it has drawn the attention of consumers back to the Lexus brand.
Compared with the German strategy of aggressive rivals, Lexus’s goal of 100,000 in 2013 is still slightly cautious. Perhaps before the day when localization really comes, Lexus needs more localization changes.
Localization of the decision-making system It is understood that Lexus’ strategy has always been very independent in the Toyota system, with the headquarters of the Lexus Product Promotion and Planning Department, and the counterpart to China is the Ministry of China. Toyota Motor also established the Global Lexus Promotion Committee and GEC (Global Lexus Executive Committee). GEC has only five executive members from the United States, China, Europe, Japan and headquarters. It will formulate the Lexus brand's future marketing strategy and market development strategy.
This top-down management approach has played a positive role in the unified formulation and unified implementation of Lexus’ global strategic decisions. However, in a special market environment, such as China's high-growth emerging markets, Lexus's management approach seems to be unable to keep pace with the market.
On April 1st, 2011, Toyota China announced that Mr. Kitajima Kitazawa, who has long been in charge of Chinese operations at the headquarters in Japan, has been promoted to permanent management, and he has successfully replaced Kato Yasuda as the general manager of Toyota China. At the same time, he will also serve as the Minister of China’s headquarters.
Shinji Kitada said that “in the past, China’s domestic affairs had reached the headquarters in Japan, and at least five meetings were required before it could be decided, but now only three members, namely Toyoda Masao, China’s Minister Sasaki Akira, and Vice President Kato Masahiro, can carry it out. decision making".
At the same time, Dong Changzheng officially assumed the position of deputy general manager of Toyota China. This is the first time that senior Toyota executives have introduced local professional managers.
Subsequently, at the end of April, Toyota China announced that Zeng Lintang, former deputy general manager of Toyota Motor China’s responsible marketing and import business department, will leave Toyota China at the end of the month, and his subordinate marketing business will be handed over to Toyota China Senior Deputy General Manager Nakajima Kenji. Takeover, while the imported car business was taken over by Nozawa Matsuda.
In the new appointment, the changes that are hardly noticeable to the outside world come from the core issue of Lexus - like Toyota, Lexus is gradually relaxing the management rights of the local team.
Product Line Structure Adjustment According to Nozaki Matsuo, the growth of the Chinese luxury car market has slowed this year, but it still maintains a high growth rate. He believes that the overall growth of the luxury car market this year may exceed 38%.
Lexus's market research shows that currently in the luxury car market, products with a displacement of 2.5 liters or less occupy a leading position in the market, and the trend of small-displacement vehicles further accelerates.
Nozaki Matsuo said that "3 years ago, Lexus's displacement of 3.0 or above accounted for 80% of sales, but the current situation has basically been replaced." It is understood that the current displacement of 2.5 liters and below has already accounted for Lexus's total sales of 47%.
In fact, the adjustment of pricing strategy is also an important reason for the increase in the sales of Lexus' small-displacement products. In the eyes of consumers, Lexus' large-displacement product prices are not superior to those of Mercedes-Benz, BMW and Audi, which are also luxury brands.
The sales network is also the focus of Lexus's transformation. Introduced by Nozaki Matsusuke, currently, Lexus has certified 135 dealers and has opened 75 businesses. In 2012, the opening target was 100 companies.
In fact, Matsuzaki Nozaki himself knew that there are more challenges waiting for him on this road. “Although the right to speak in the Chinese team is gradually increasing, but in many things, Lexus’s local decision-making power is still limited.â€
After Leo Nozaki took office, Lexus’s change was underway. CT200h’s pricing targeting the Chinese market was only the first step for him to gain more say for the Chinese team. This step has already been taken out and the pace behind can be kept up. The key to Lexus being able to rise again in China.
Changing Lexus to lay down his body to seek market
2011 has already come to an end. In this year's inventory, we can find many companies that have grown up in contrarian directions and continue to grow due to the strong sales of their one or two models. Companies that have lost the city are experiencing difficulties and need to turn around.