奇瑞汽车中国市场进入的选择--加拿大Assignment代写范文

加拿大Assignment代写范文:“奇瑞汽车中国市场进入的选择”，这篇论文主要描述的是奇瑞汽车是一家中国的国有企业，主要生产各种类型的汽车，奇瑞自1997年创立以来一直都保持着稳步的发展，但是在2010年后出现了发展的危机，销售额逐渐下降，奇瑞为了能够增加汽车的销量以解决企业所面临的危机，便选择了进入美国的汽车市场。

1. Executive Summary执行摘要

The main purpose of this report is to identify the available options for entry into the United States of America car market and provide the Board of Directors with a recommended course of action which will best fit Chery Automobile Company Ltd, China.

Chery is a state-owned automobile corporation. Chery’s key products include passenger cars, minivans and SUVs. As everyone knows, Chery has developed steadily since it was established in 1997. Its amount of sales reached a high peak in 2010. However, due to some reasons, the amount of sales declined after 2010. Thus, it is very essential to seek for approaches to increase sales to enter into the substantial U.S.A. car market.

According to analyze advantages and disadvantages of Chery in relation to the American market, it is found that the joint venture or strategic alliance is a better market entry option for Chery. With the feasible strategy, it can motivate Chery to steadily develop in the new market.   

2. Introduction介绍

Chery Automobile Co. Ltd was established in 1997. Its headquarter is based in Anhui, China. There are more than 20 types of vehicles to sell in the market. Additionally, more and more new designs will be released soon. Chery insists on the sustainable way to update the auto-making technology in order to follow the trend. Besides, Chery implements the principle of “going abroad”. More and more vehicles are exported to over 80 countries and regions. Chery has grown rapidly since its inception in 1997. In 2010, its sale reached 700,000 units. However, after 2010, the amount of sales decreased. In March 2012, Chery created a joint venture with Jaguar Land Rover to produce and sell Jaguar Land Rover cars. In order to raise the amount of sales near the 2010 level, Chery determines to go into the U.S.A. automobile field with the new brand.

3. Understanding the Market Entry Options了解市场进入选项

If an organization plans to develop its business, it is essential to enter a foreign market. When the company has determined to pass into another market, a series of choices can be chosen (Anderson and Coughlan, 1987). However, it is necessary to consider what time of entry is appropriate. If the products are innovative and have the advantages, it is very important to grasp the market demand and establish a strong brand name before other competitors get in. If there are some uncertain factors to enter the foreign market, the organization can choose to follow behind other companies to reduce the risk and save time and resources (Keegan, 1989).  

Generally, the market scale also influences the firms to make strategies. Basically, once the firm decides to be a large scale entry, they will spend millions to acquire the local market share, and operate advertising campaigns on various media platforms (Cunningham, 1986). If the venture is not the most aggressive firm, it may invest resources in small amounts in order to reduce the risk. Through gradually learning from the local environment, it  can move along the learning curve more quickly.

There are a number of options available to sell the products in global markets. The most feasible approach will rely on the business, its goods, the result of the market circumstance environment analysis (Ron, 2008). Here will list some common market entry options as following:

Direct export: companies produce the products in the domestic market, then they sell the goods in the oversea markets.

Licensing: It is a less risky market entry approach. The licensor permits the organization to produce the products in the foreign market with its brand name, then they will receive a royalty payment.

Franchising: it is a kind of licensing. The organization has a feasible management mode in the domestic market, then grants the mode to foreign investors. The parent company can receive the training and marketing services (Chris, 2009).

Contracting: it is another form on market entry in the foreign market that includes the exchange of idea. The producer of the products will sign up a contract with another company to produce the goods on their behalf. Thus, the manufacturers of the product don’t consider the exporting.  

Joint venture: In order to reduce the degree of risk of market to go into the foreign market, two corporations cooperate with each other to establish the firm to run. Both of companies not only undertake the risks together, but also share the profits together.

4. Evaluation of the Market Entry Options市场进入方案进行评估

4.1 Strategies of Chery to Enter Other Global Markets  

In recent years, the Chinese automobile industry has grown rapidly. Chery, as a state-owned automobile manufacturer, not only develops rapidly in the domestic market, but also practices “going out ” strategy. Chery is the first company to export vehicles to abroad. In late 2001, Chery exported cars to Syria. Subsequently, the sales jumped 3 to 4 times. By the end of 2006, Chery has exported vehicles to 67 countries and regions, for example, Argentina, Egypt, Iran, Malaysia, Russia, Thailand, the Middle East and so on. Besides, it also established 7 CKD factories in 6 countries, for example, Iran, Egypt, etc. It is reported Chery is China’s first automaker with exports of more than 500,000 units.  

After years of development, Chery has developed from passive orders' acceptance to sort the foreign markets, introduce the business strategies to enhance management of foreign distributors and improve after-sales service. Based on its attractive appearance, high quality, competitive prices and timely services, Chery has prevailed in the overseas market. Chery’s brand image is continuously upgrading. Thus, it enables Chery more confidence in global markets and clearer strategies in export. Besides, Chery broadly collects the information to make the export strategies in order to expand its sales. Generally, Chery implements the following strategies to export cars in other international markets: 1). Developing countries first, then developed countries; 2). CKD exports prior to vehicle exports; 3). Feasible plan and regional spread; 4). Cooperation first, then joint venture. 5). Build wholly-owned subsidiaries and master foreign marketing channels.    

4.2 Strategies of Foreign Automakers to Enter the US Automobile Market. 

In the US market, it is fiercely competitive in the automobile industry. There are not only local US automakers, but also other foreign automakers. It is easier for local US automakers to win the market shares (Rae and John, 1965). However, it is a little difficult for foreign automakers to enter the US market. Despite of difficulties, many foreign car firms have successfully passed into the American marketplace with strategies (Jeannet and Hennessey, 2004). Here will list some car companies to successfully enter the U.S.A. market with the feasible market entry options:

Foreign direct investment & joint venture: Toyota Motor Corporation is a Japanese automaker. In order to enter the US market, Toyota directly established the plants in Torrance, California and operates as a holding company. With the positive experiences of ownership and high quality, Toyota promotes its vehicles in the US market. Besides, Toyota had a joint-venture operation with General Motors from 1984 to 2009. Toyota still has a joint-venture with Subaru since 2006.  

Cooperate with U.S. distributors: Indian automaker Mahindra & Mahindra Ltd has signed an agreement with Global Vehicles U.S.A. Inc. to go into the American market in order to sell SUVs and pickups.   

4.3. Identify the possible options for Chery to Enter the US Automobile Market

In order to successfully enter into the U.S.A. car market, it is necessary to analyze the strengths and weaknesses of Chery in relation to the U.S.A. market. The major advantages of Chery related with the U.S.A. market are in the fields of fiscal resources, competitive price, production, flexibility and the impact of the fiscal crisis. However, there are some disadvantages to enter into the U.S.A. market, for example, efficiency, research, reputation, marketing, management and so on. Based on Chery’s strengths and weaknesses in relation to the US market, It is essential to identify the feasible options for Chery to enter into the U.S.A. market. There are some entry modes to enter into a foreign market, for example, exporting, joint venture, strategic alliance, licensing and foreign direct investment. Due to lack of market research and high transport costs, exporting is not the best way for Chery to enter the US market. Because of the absence of an attractive licensing asset, licensing is also not a reasonable approach for entering the US market. Chery’s resources and capabilities don’t have absolute advantages to directly invest the foreign market, so it seems that a foreign direct investment is not the feasible method for Chery to enter the US market. However, the US company’s strengths can make up Chery’s weaknesses, so it is a good strategy to cooperate with the US automakers as a way of the joint venture. With a type of a strategic alliance, Chery can gain a financial benefit with the help of the US firm’s brand. Therefore, the strategic alliance is also a reasonable strategy to implement. Based on analyze the different types of entry mode, the joint venture and strategic alliance are the most suitable strategies for Chery to enter the US market. However, which option is the best strategy to enter the US market? If Chery intends to acquire the pure profit, the strategic alliance is the best choice to enter the US market. If Chery’s target is to sell its own vehicles on the US market, it is the most appropriate to choose a Joint Venture with a US car company under the condition that the new goods is labeled as a Chinese brand. 

5. Conclusion总结

China, as the third largest economic entity in the world, is bound to establish its own brands in the automobile industry. Chery, as a state-owned automobile manufacturer,  operates very successfully in the domestic and foreign markets. However, its sale declined after 2010. In order to identify the possible options for entering the US market, it analyzes how Chery has entered other international markets and how other car companies have entered the US market. Based on the strengths and weaknesses of Chery concerning the US market, it concludes that the joint venture and strategic alliance types are the feasible options for Chery to turn into the new market. With the reasonable market entry option, it is a tendency for Chery to operate very successfully in the US market.      

6. Recommendations建议

After analysis of market entry options for Chery, it identifies that the joint venture or strategic alliance is a better way for Chery. Once Chery intends to operate very successfully, it is necessary to consider some global marketing strategies:

Market research: it is necessary to decide the target customers in the US market. The market scale is also a factor to influence the demands of products and services. Research the strengths and weaknesses of other American companies to make strategies. Evaluate the customers’ purchasing capacity to set the pricing structure for the new products (Korey, 1986).   

Competitive profile: Assess the local companies in the US market to analyze the strengths and weaknesses of Chery. Evaluate the competitor’s brand-name strength and customer loyalty to widen its quantity of customers. 

Seek for a local US automaker: Based on the strengths and weaknesses of Chery, it is necessary to seek for a local US automaker to cooperate together in order to make up the weaknesses of Chery and win the market shares and expand the market scale.

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