expansion of a company worldwide

Topics: Automobile, Automotive industry, Renault Pages: 8 (2395 words) Published: November 6, 2013
Executive summary

China has been the biggest automobile market in the world. At present, we cannot imagine that the automobile industry of China does not have its own brands and core technologies. China has been the third largest economic entity in the world, and is bound to cultivate international proprietary brands in the automobile industry. Chery Automobile Co. Ltd was founded on Jan. 8, 1997,is a brand of vehicle that is manufactured by a China automobile company, ranging from super-mini to cross over SUVs, accompanied by various body styles as well as different ranges of market price. Though the Audi headquarter is in WuHu, in the AnHui province in China, the brand is marketed and most known worldwide. This paper will focus on why, when, how and 4Ps analysis, also give introduction about Chery at first and conclusion finally.

Table of Contents

Executive Summary1
Table of Contents2
Introduction3
Why ?4
Where ?5
When ?6
How ?8
4 P’s9
Conclusion11
References12

Introduction

Founded on January 8th, 1997, Chery Automobile Co. Ltd is a state-owned corporation that evolved from his first car selling 30,000 times from December 18, 1999, to the wide spread brand with annual output of over 500,000 units today. The main products of Chery are passenger cars, SUVs and minivans, in addition to joint ventures with Jaguar Land Rover and Qoros.

Chery’s headquarters are based in Wuhu in the Anhui province in China. The brand name was derived from the English word cherry, symbolizing cheerfulness and happiness. The corporate concept of Chery is to “serve mankind with independent innovation and world-class quality”, as well as “Customer first, quality foremost and efficiency paramount”.

The core values of the corporation are targeted management and standard procedure and continual improvement, as well as being human oriented, honest, cooperative, diligent and showing integrity. In 2011, Chery topped its export performance as the largest passenger car exporter by exporting about 25percent of its total production. Currently, there are more than 20 models of Chery available on market, and in addition, dozens more will be released successively. Chery has accomplished a sustainable way of development by doing research and preparation while producing autos at the same time, which supports Chery updating its auto-making technology and making its products always follow the trend.

Why?

In 2009, according to the ‘Report of 2009 China Initial Quality Study’ by JD Power Asia Pacific, Chery’s car models had been elected as top car models in the compact and premium car segment. In the report it is also stated that China improved the initial car quality by 14 percent, leading to the fact that the quality gap between the global and Chinese automobile brands is narrowing. The Chinese customer is described as price-conscious, saying that in the past, low-priced cars were the most important segment for car manufacturers in China in the mid-2000s. Today, quality is perceived more valuable then price when talking about cars, which leads to the point that widening the customer base increases exposure and brand awareness. These facts support the idea of expansion, since Chinese car manufacturers are gaining popularity due to quality increases and the ability to keep costs low when needed. Expansion beyond the Chinese boarders opens up new clientele and gives the brand a chance to evolve from a local brand supplying affordable cars to a brand that targets customers with a different level of income, following the example of Toyota and Lexus. Considering that foreign brands in the car industry are often perceived as exotic and desirable, being a Chinese car manufacturer in China promises to prove difficult, with small or no chance of targeting the higher income group in China preventing domestic market share increase. Expanding the brand to other...

References: Harish A., 2010.International Center for Management Research, Retrieved from http://www.icfaiuniversity.in/Cases/Cherry%20Auto%20Success%20Story.pdf
Georgina Robinson, 2011. China 's cheap car: is the Chery a lemon? Perhaps, but not for long. Retrieved from http://smh.drive.com.au/chinas-cheap-car-is-the-chery-a-lemon-perhaps-but-not-for-long-20110318-1bzq7.html
Gregory E Osland; Charles R Taylor; Shaoming Zou, Marketing Intelligence & Planning; 2001; 19, 3; ABI/INFORM Global. Selecting international modes of entry and expansion, pg. 153
McGraw-Hill/Irwin, 2007.International Business, 6/e (distributed by teacher)
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