...partnership with Niels Brock, Copenhagen Business College BA (Hons) Business Administration. Market analysis of Chery automobile Submitted by: Resham Dhakal instructor : Ian choo Student No. P11016315 (CORP eve) Date: 2011-11-14 1 Introduction The main propose of this preliminary project is to analyses the present situation of Chinese automaker ‘Chery Automobile Co. Ltd. In order to analyses the present situation, we mainly focus on its internationalization process, its domestic market as well as international market, and its strategy of growth. And it is supported with different theories such as SWOT analysis, PEST analysis, Porter 5 Forces, 4Ps. 1.1 Chery at a Glance Chery is one of the Chinese fast growing state owned enterprise founded on 1997.with a capital of CNY 3.68 billion, and its first car came on a production on 1999. At present Chery owns for sub-brands, chery, karry , Rilich and rely. Currently Chery has 16 different module in maket and it possesses an annual production capacity of 900,000 automobiles. (Chery) . With the strategy of ‘Going out’ Chery become the first Chinese automobile company to export its production in overseas, including more then 80 countries. It offers cars, sedans, SUVs, and mini-vans on its different segment. Source – Chery International Co. ltd This figure show that, the total sale of Chery automobile is been increasing in every year, in the year 2008 its sale is 356,000 unit which is decrees...
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...Case Study I: Chery Automobile Company Situation Analysis Chery Automobile Company, an inexpensive car manufacturer attempt to expand its capacity and enter into a developed country with an expectation to be strong enough to compete internationally and become a global car maker. SWOT Analysis |Strengths |Weaknesses | | | | |Inexpensive car |Un qualified workforce in middle management | |Achieve low cost strategy |Sales satisfaction and customer service are below the industry | |Partner with a global automobile company like Chrysler |standard | |Strong relationship with suppliers |Imitation rather than Innovation | |Strong position in domestic market | | |Opportunities |Threats | | | ...
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...Industry……………1 2 The Burgeoning Independent Chinese Auto Companies………9 3 Case Study: Chery Automobile Company………………………14 3.1 Introduction………………………………………………………… 14 3.2 Characteristic Analysis…………………………………………….. 18 3.2.1 3.2.2 3.2.3 3.2.4 3.2.5 3.2.6 Technical Capabilities………………………………………………….18 Production Management……………………………………………….24 Product Characteristics……………………………………………….. 25 Intellectual Property…………………………………………………... 29 Exportation Strategies……………………………………………........33 Enterprise Culture…………………………………………………….. 36 3.3 Comparative Analysis ……………………………………………....36 4 Conclusions………………………………………………………. 42 References…………………………………………………………….47 1 Overview of Current Chinese Automotive Industry China’s first automobile manufacturing base, FAW (First Automobile Works), was built 50 years ago. From then on for over 30 years, there was no big progress in the Chinese automotive industry on both production and technology sides. Production capacity was low, and technology was outdated. From the middle 1980’s, with the establishments of joint ventures, the Chinese automobile industry began to develop faster than before. So far, all of the world's major automakers, such as General Motors, Toyota, Ford, Volkswagen, DaimlerChrysler, Nissan-Renault, PSA Peugeot Citroen, Honda and BMW, have established joint ventures in China*. In particular, the joint ventures control about 90 percent of China's passenger car market. The major players in the Chinese automotive industry FAW SAIC Changan ...
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...(2008)., Issues in Accounting Education, 23(2), 261-272.) The Automotive Electronic Industry R & D Electronics Company is an established manufacturer and has been designing, manufacturing, and supplying electrical supplies in various forms to the automotive industry. The worldwide market for semiconductors in the automotive electronics industry exceeds $10 billion. In addition, wireless data delivery – currently is estimated to be a $20 billion industry, and experts predict that soon 50 percent of all new cars and 90 percent of higherend models will possess telematic-capable devices. Further, many experts estimate that 30 to 40 percent of the production value of all automobiles consist of electrical products. R & D Electronics historically has invested heavily in researching and developing auto-motive electronic technology in order to provide customers with state-of-the-art functionality, safety, and performance. R&D Electronics continues its heavy investment in this research and development arena because the resulting product features quickly devolve from being “cutting edge” features that create a competitive advantage to commodities that customers regard as standard features on all automobiles. R&D Electronics has continued to upgrade its research and development and manufacturing abilities to keep pace with changing technologies. For instance, R&D Electronics designs, produces, and installs a direct measurement tire pressure sensor and monitoring system for many of its automotive...
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...Strategic Transformation of Automobile Industry in China Som Techakanjanakit School of Management, Wuhan University of Technology 122 Luoshi Road, Hongshan District, Wuhan 430070, Hubei, China Tel: 86-186-7239-9237 E-mail: som7125@hotmail.com Meifang Huang (Corresponding author) School of Economics, Wuhan University of Technology 122 Luoshi Road, Hongshan District, Wuhan 430070, Hubei, China Tel: 86-186-7239-9537 Received: May 28, 2012 doi:10.5430/ijfr.v3n3p8 Abstract In the past few years, the global automobile industry is developing difficultly because of the influence from the financial crisis. In contrast, China's automobile production and sales are still having a blowout type growth, and jumped into the world's largest automobile production and sales market. At the same time, Chinese automobile companies continue to deepen and join with international brand cooperation; independent research and development of the independent brand production, and their technical also get greatly strengthened. Similarly, in the tide of industrial upgrading and international acquisitions, strategic transformation era of Chinese automobile industry has gradually started. This paper based on the world economic crisis brought both challenge and opportunity to the automobile industry in China, comprehensively analysis China's automobile industry development present situation and development trend in the transformation era, with case analysis of China's automobile companies, and then gives some...
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...15 ECTS Department of Economics and Informatics University West Spring term 2010 ABSTRACT Over the past two decades, the open-door of the market supply in China has had a massive impact on the automotive market. This development contributes to the globalization of the automobile industry that involved the integration of the Chinese domestic market into the international markets. Among many reasons, motivation to gain access to industrialized markets and to gain access to superior technology, management resources and knowledge are the most driving factors of the Chinese automotive industry for the internationalization and going abroad strategy of China´s automotive industry. This study investigated whether different external globalization drivers and internal organization factors have differential effects on various dimensions of China´s automakers firms’ global strategy. Most of the studies written about global strategies have implemented only either of the internal or the external drivers of the internationalization of the firms. The contribution of the paper introduces a more comprehensive model on the global expansion of a firm. This paper concludes that China´s automotive industry has some competitive advantages such as low cost, while, facing a number of challenges that hinder the internationalization of Chinese automobile companies. It also shows that multiple factors play an important role in firms' internationalization global strategy plan. It is thus essential...
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...Instructions: Use the following framework for your case analysis. Your case analysis assignment is designated above and can be found in your textbook. Step 1: Read the case thoroughly with a view to understanding the international marketing issue illustrated by the case. Make sure you discriminate between information which is relevant and that which is superfluous and/or ambiguous. Then select and apply relevant theoretical marketing models from the text. Step 2: Define clearly and concisely the basic problems in the case (some of the questions may already be formulated for you, but these questions are only a guide and do not necessarily cover all the basic problems). Then identify the main issues (for example, increased international competition, changes in underlying consumer tastes, etc.). Do not be confused with "symptoms" --for example, declining market share, lower profitability...these kinds of things are usually symptoms rather than the root cause or problem. Identify the key decisions to be made (for example, how to expand internationally, or how to position the product, or how to increase international competitiveness, etc.). Step 3: Use the information and facts provided in the case to analyze the situation. This would include understanding the market, demand (buyer) competiton, company strengths and weaknesses, external opportunities and threats (SWOT analysis), etc. Step 4: Based on your analysis from step 3 above, identify possible alternative strategy...
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...…………………………………………………………...3 2. Introduction ……….…………………………………………………………….4 a. Overview of Automotive Industry in the UK b. Overview of Jaguar Cars 3. Situation Analysis…………………………………………....…………………..5 4. Branding Strategy and Management…………………………………………….6 5. Communication of the Jaguar Brand in the Market……………………………..9 c. Global Marketing Campaign d. Social Media Marketing e. Corporate Social Responsibility f. Same Essence, Different Market g. “The Art of Performance” 6. Conclusion………………………………………………………………………15 7. References……………………………………………………………………… 16 1. Executive summary This report aims to analyze the branding activities of Jaguar Cars and how the company is run with the help of its main global marketing activities. The report discusses and analyses the external business environment of the company using situational analytical tools such as the PEST analysis and Porter’s five forces. To better understand the branding of Jaguar Cars, the ‘Brand Onion’ tool has been used to analyze the company’s marketing mix. The report also compares and contrasts the way in which the brand image has been communicated in mature developed markets and emerging markets. Specifically this report will analyze Jaguar’s position in the automobile market in the United Kingdom and the United States of America as the developed countries and China’s emerging economy. 2. Introduction a. Overview of the Automotive industry...
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...questions. Students are required to answer questions for any 10 case studies (20 answers). Students are advised to submit answers for all 10 cases in one go, for results to be adjudged in one instance. 01. McDonald’s in the United Kingdom a. When McDonald’s entered the UK market in 1974, it initially failed to attract British customers and reported losses. However, as of 2009, the UK was one of the most promising markets for McDonald’s. Many factors were responsible for this change in situation. First, identify the subset of factors that could be attributed to the organization’s strategies. Next, tabulate that subset of factors along with the associated strategies for each factor. Finally, classify these strategies into originally intended and subsequently emergent strategies. b. As of 2009, McDonald’s faced many challenges in the UK. In your opinion, what strategies should McDonald’s adopt at the corporate, business, and functional levels to continue its growth trend in the UK? Give reasons for your answer. 02. Emerging Markets Strategy: Nokia Life Tools for Rural Markets a. Business strategy is often compared with war strategy, resulting in win-lose situations. ‘Nokia’s emerging markets strategy is apparently creating a win-win situation, with benefits accruing to the company, its rural customers, as well as its business partners who provide telecommunication services or the content on agriculture, education, and entertainment.’ Do you agree with this statement...
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...Implications Summary The automobile industry, a key sector in China’s industrialization and modernization efforts, has been developing rapidly since the 1990s. In recent years, China has become the world’s largest automotive producer, with annual vehicle output of over 18 million units in 2011. China is now also the world’s biggest market for automobile sales. Meanwhile, China’s auto sector development and policies have caused concerns in the United States, from automotive trade, China’s failure to effectively enforce trade agreements and laws, to market barriers and government policies that increasingly favor Chinese manufacturers, which could affect business operations and prospects of international companies doing business in (or with) China. China’s auto industry has developed extensively through foreign direct investment, which has come in the form of alliances and joint ventures between international automobile manufacturers and Chinese partners. These international automobile manufacturers, who generally dominate the higher end of the Chinese market, have focused on making cars for China’s large and fastgrowing market. The domestic Chinese automakers, who occupy the lower end of the market, struggle to improve design and quality to expand sales overseas. China exports and imports relatively few vehicles. Most of the cars produced in China stay in China and its vehicle exports are mostly light trucks and passenger cars shipped to developing country markets. Automotive trade between...
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...CHINA’S AUTOMOBILE INDUSTRY COMPETITIVENESS THROUGH PORTER’S DIAMOND MODEL DI WU Bachelor of Management, University of Lethbridge, 2004 A Research Project Submitted to the School of Graduate Studies of the University of Lethbridge in Partial Fulfillment of the Requirements for the Degree MASTER OF SCIENCE IN MANAGEMENT Faculty of Management University of Lethbridge LETHBRIDGE, ALBERTA, CANADA © Di Wu, 2006 (Approval/ Signature page) ii Abstract This paper incorporates Porter’s diamond model to analyze China’s automobile industry. Besides looking at the four determinants of competitiveness in the original model, this study specifically examines the impact of government on industry competitiveness. This study retrieves archival data on multi-measurements used in prior studies. The author incorporates one case study of a Chinese auto firm to illustrate the specific impact of government policy and the responses of auto assemblers and component suppliers. Interviews with experts in auto-related industries are conducted to triangulate the findings. Results show that the Chinese auto industry is still in its early stages of development, whereas product quality and economies of scale of domestic automakers are approaching global standards; thus Chinese auto firms aim at becoming major players in the international market. The government plays an active role in assisting the industry development as the nation transitions from a planned economy to a free market. iii ...
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...IBM Business Consulting Services IBM Institute for Business Value Strategy and Change Going global Prospects and challenges for Chinese companies on the world stage In association with IBM Institute for Business Value IBM Business Consulting Services, through the IBM Institute for Business Value, develops factbased strategic insights for senior business executives around critical industry-specific and crossindustry issues. This executive brief is based on an in-depth study by the Institute’s research team. It is part of an ongoing commitment by IBM Business Consulting Services to provide analysis and viewpoints that help companies realize business value. You may contact the authors or send an e-mail to iibv@us.ibm.com for more information. School of Management at Fudan University Fudan University was the first institution of higher learning in China to set up a department of business education, and was also the first in the country to resume its business education program after the reform and open-door was implemented in China. Over the past two decades, the School of Management at Fudan University has developed into an internationally well respected business school. This joint project with the IBM Institute for Business Value fulfills our mission to analyze business operations and national economic activities using advanced management theories, systematic methods, mathematics models and information technology. It is part of our commitment of timely research...
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...started production of the Nano from makeshift assembly line at Pantnagar and launched a car in three variants priced between Rs. 123,000 and Rs. 175,000 The Downfall Saga ➢ Tata witnessed a sequential fall in 2010, lowest in November Nano sales was 509 units ➢ Issues like production delays, multiple fire accidents, increasing prices of car, difficulty in getting loan from bank and the stigma attached to buying a cheap car was cited as cause for sales drop. ➢ A car in India was supposed to be a valuable product and Nano being termed as cheap car was not being accepted by middle class. What do they do ? They produce very low cost cars to the indian market. Making cars available to a costumer segment that could previously not afford cars. External Analysis Customer Analysis in the Budget Car Segment Customer Segment |Segment |User Intention | | | |Entry-Compact Car |Lower price, small |47% | Tata Nano, Maruti Alto, Ford | | |cars | |Figo, Maruti WagonR, Hyundai's | | | | |Santro, i10 and Eon and GM's Beat| |Premium-Compact Car |Higher priced, |11% |Maruti Swift, Hyundai i20 and VW | | |probably second car| |Polo...
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...-7470070078 B-Tech (h) - MBA (IT) Table of contents Abstract introduction objectives and scope of the study RESEARCH methodology literature review tata’s nano conclusion recommendations bibliography abstract A strong car brand can create significant value in the automotive industry. The price consumers expect to pay for otherwise identical luxury vehicles can vary as much as $4,000, depending on the car's brand. For mass-market cars, brand helps determine which products a consumer considers buying. Furthermore, superior brands extend their halo across every model of vehicle within the brand. It's no surprise that most auto manufacturers make brand positioning and development a key item on their marketing agenda. Because of the prominent role that brand positioning and development play in many auto manufacturers' business strategies, this research has been conducted under extensive research and analysis to better understand how consumers think about car brands. The study analyzes the set of factors which provide valuable insights into consumer brand perceptions. The consumers have a simple yet sophisticated understanding of what differentiates car brands. Notwithstanding automakers' attempts to distinguish their brands on the basis of lifestyle or emotional imagery, consumers evaluate brands in terms of their earned reputation for product excellence relative to their total ownership cost. Consumers'...
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...FIM ASSIGNMENT General Motors Prepared by: CharuSingla, CFM Roll #07 AnkitSrivastava, IM Roll #05 Aniket Singh, CFM Roll #04 RakeshJha, CFM Roll #14 Vishal Suri, CFM Roll #22 AbhishekGoel, CFM Roll #02 General Motors 2013 Acknowledgment The project would not have been possible without the kind support and help of many individuals. We would like to extend my sincere thanks to all of them. We are highly indebted to Mr. D.C.Singhal for his guidance and constant supervision as well as for providing necessary information regarding the project & also for their support in completing the project. We would like to express my special gratitude and thanks to industry persons for giving us valuable information and insight. Our thanks and appreciations also go to our colleague in developing the project and people who have willingly helped us out with their abilities. IIFT 2015 Page 2 General Motors 2013 Table of Contents Acknowledgment........................................................................................................................... 2 Introduction .................................................................................................................................. 4 Products or Services delivered and annual output ......................................................................... 6 Countries the company is present in ............................................................................................ 10 Problems...
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