Initially established as a producer of metallic parts and later universal joints, the company emphasized the quality of products combined with low costs. The cost of production in China was considerably lower than production costs in developed markets which allowed the company to pursue a ‘high quality, low prices’ strategy. Wanxiang is a cost leader; low prices are the competitive advantage that has made the company an attractive partner for foreign companies.
However, more recently, the company has added a differentiation strategy to its strategic development plan and has begun to produce a variety of automobile parts in China and overseas. Its bid to create an electric car can be seen as part of a differentiation strategy, too; it would allow Wanxiang to become a fully-fledged car producer instead of a supplier of parts, thus allowing the company to reach a new level of its development. Today, the company is both – a differentiator and a cost leader, which warrants its highly competitive position in the global market.