The ideal globalisation strategy to be employed by Chinese multinational car firms in their attempts at entering and achieving success within developed markets-a critical analysis of potential strategies

Youdeowei, Timothy (2012) The ideal globalisation strategy to be employed by Chinese multinational car firms in their attempts at entering and achieving success within developed markets-a critical analysis of potential strategies. [Dissertation (University of Nottingham only)] (Unpublished)

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Abstract

Since the late 1970’s, China’s ‘open-door’ policy of foreign direct investment has been seen by the state as successful method to promote and integrate China into the World Economy. This globalisation process has had pivotal impacts on many of its industries in particular its automobile sector. The industry-once seen as cheap, small and lacking innovation and aspiration has now become the world’s largest automobile market.

Such a turnaround in fortunes occurred due to a combination of luck, Government policies and the natural shift of economic power towards the People’s Republic of China. A key result of the development of their car industry has been the increased globalisation of Chinese car firms personified by their increased efforts to not only enter but play vital roles within foreign automobile markets. These efforts have been realised in developing economies such as Brazil, China, Nigeria, Iran, Ukraine and Saudi Arabia but the challenge for the world’s largest economy is to replicate this success in the developed car markets of the world, mainly Western Europe and USA.

This study investigated the ideal globalisation strategy that should be employed by Chinese car firms (both state owned and private) in their attempts and entering and securing success in developed economies.

Most of the studies written on globalisation strategies have tended to focus on the comparisons of characteristics between the old, traditional multinational corporations and their new counterparts,

inward foreign direct investment into China, globalisation strategies from the perspective of developed firms attempting to enter Chinese markets or a depiction of initial strategies to employ. The contribution of this dissertation is that formalises an ideal globalisation strategy that can be adopted by Chinese automobile corporations attempting to enter and prosper within developed western markets. It provides a more comprehensive analysis of the initial and continued strategies that they should employ. It attempts to do this by conducting a critical analysis of available theory on the topic, sourced from papers and books, while at the same time evaluating real world case studies of Chinese car firms attempting a globalisation process, and reviewing their success or failures- finally producing a viable strategy.

This paper concludes that there are certain conditions and circumstances which may change the mode of strategy chosen; however as a general case a privately owned Chinese car firm should select accelerated internationalisation, strategic alliances and transnational strategy as their overall strategy of integration into a developed car market. Whereas a state owned enterprise should select slow internationalisation, M&A and also a transnational strategy to achieve success.

Item Type: Dissertation (University of Nottingham only)
Depositing User: EP, Services
Date Deposited: 05 Apr 2013 13:30
Last Modified: 23 Oct 2016 22:24
URI: http://eprints.nottingham.ac.uk/id/eprint/26171

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