Brand Recognition, Interdepartmental Conflict, and Performance: An Investigation of Porter’s Differentiated Competitive Strategy Implementation in a Large Chinese Automobile Company

Abstract

Due to the unique market context and consumer differences, Porter’s generic competitive strategy has often failed in China. This study examined the impacts of managerial factors on performance by using the company brand as an indicator of performance; furthermore, we discuss the management issues of Chang’an when adopting a differentiated competitive strategy. This research used a quantitative method to form a consumer cognition map and compared product brands with competitors. It also investigated the managerial factors of the case company that affected the implementation of a differentiated competitive strategy. Interviews of the managers from the case company were also conducted to provide an in-depth understanding of management issues. The results show that the case company, Chang’an, as a large state-owned automobile manufacturer, failed to generate satisfactory outcomes by implementing a differentiation strategy. The reasons for the unfavorable enterprise performance include unclear departmental role positioning, a lack of communication mechanisms, and missing evaluation mechanisms. This research offers an in-depth investigation of the application of Porter’s differentiated competitive strategy in a Chinese state-owned company (there has been little academic attention on this). Since many state-owned companies use similar management structures, the results of this research can help managers find management problems and fix them.