Essays on How Best to Enter Chinese Car Industry Case Study

Download full paperFile format: .doc, available for editing

The paper "How Best to Enter Chinese Car Industry" is a perfect example of a Marketing Case Study. China is one of the best ever growing capital markets in the world and the most admired markets for new foreign entrants. The study that has been carried to show the progress confirms the success or failures of the new entrants. Applying the new definition of success and an exclusively piled up archival database, the researchers analyze why and whether companies that entered China succeeded or failed. The most significant outcomes are quite counter-intuitive: bigger firms are more successful than smaller firms, and most open of the emerging markets have lower success as far as competition is concerned.

Other findings are that success is higher with a new entry, the greater power of entry approach, and shorter economic distance between India and host nation china (Meredith, 2007). For Tata to make the best entry to the new emerging market like china it has to make strategies of the product-market mix that will cut across number factors such as industry analysis, market overview (size, trend, and composition), competitor analysis, market strategy and implementation strategy (clientele, product positioning and recommendations).

Tata Nano is considered the people's car, car, which middle-class people can think of, and skillful engineering marvel from TATA. So far, it is the most economical car in the industry going at the US $2300 price tag since 2011. Entry mode When a firm like Tata Motors enters a new market, it looks for a set of specific customers to develop and diversify its Nano car business. Successful entry into a new market will depend on the Tata’ s ability to match its capacities to these new customers’ requirements. Industry History A brief comparison of the automotive industries in the selected markets As far as the production of cars is concerned, there are great differences that exist among the markets in Australia, the US, China, Russia, and Mexico.

In Australia, the markets were well known for the production of large-capacity vehicles but later collapsed and led to the closure of the Mitsubishi plant (Chen, 2002). The US is also well known to be the first in the production of cars and lasted several years in the international market.

The large-scale production reduced during the great recession and other nations took over in the production of automobiles. The markets in Russia have been affected by economic challenges and led to a decrease in the annual production of automobiles. In Mexico, there has been dependence on parts from the Soviet Union and thus production and marketing have not been very advanced. However, China has emerged the greatest car dealer in the world, producing over 18 million vehicles annually and has overtaken Japan.

This has made it the greatest car dealer in the global scene. Chinese Car Industry China's vehicle that first hit the road in 1956 was the 'Jiefang' or liberation truck of the Changchun No 1 Automotive Works, and that is how China's motor industry began. 1956 to 1965 was the real beginning period of the china car industry, and by the end of that era, the industry had the capability to make 60,000 vehicles per year. They could make a range of up to ten basic car models. Ever since the industry has been growing in phases while increasing the number of models they make.

The second phase saw the arrival of Volkswagen vehicles in 1985, with new models like Volkswagen Passat emerging in 1991(David, 2002). The third phase started in late 2000. It was marked by producing the first entirely Chinese vehicle that had the quality of European vehicles. Jeep Cherokee inspired this car known as Zhonghua. The industry has been growing ever since but mostly with imported cars from the leading carmakers such as the US, Japan, and Germany. I believe China is the channel for the streamlining of the global car industry, and that the trends illustrated here to act as the motivating force behind several of the changes that are happening.

China has fast turned out to be the largest automobile market in the world. In 2009, China posted car sales worth 13 million units compared to 9.7 million motor vehicles traded in the U. S. market. It now appears as if all the components are there for the “ Chinese car factory” to grow to the global markets.

Bibliography

Chen, Z. B. (2002), WTO and Chinese car industry: Policy and Strategy. Mechanism industry publishing company: 22 Bai Wan Zhuang Avenue, BeiJing, P.R. China.

David, Kiley (2002) Getting the bugs out: the rise, fall, and comeback of Volkswagen in America. John Wiley and Sons. pp. 23-34.

Guo, K. S. (2003), Chinese industry after accession to WTO. Economy and management publishing company: 8 Hong Yuan Lane, Kou Liu Tiao, Xin Jie, BeiJing, P.R.China.

Hu, M. Y. and Chen, H. Y. (1996) ‘An empirical analysis of factors explaining foreign joint

venture performance in China’. Journal of Business Research, Vol. 35, pp.165-173.

Johansson, Johny K. (2000), Global marketing: foreign entry, local marketing, and global

Management, 2nd ed. McGraw-Hill: Boston.

Jonathan, Reuvid and Yong, Li (2005), Doing Business with China. GMB Publishing Ltd. pp. 234-256.

Keegan W. J. (2001) Global Marketing Management, 6th ed. Tsinghua: Prentice Hall.

KURCZEWSKI, NICK (2009). "Tata Nano Launched in Mumbai". Wheels Blog. The New York Times. Retrieved June 6, 2012.

Mechem, R. M. (2004), ‘Strategies for investing in China’. China Business Review, Vol. 31, No.5, September, pp.6-7.

Meredith, Robyn (2007), "The Next People Car", Forbes. Yahoo! - ABC News Network. Retrieved June 6, 2012.

Tuominen, K. (2000), Managing Change: Practical Strategies for Competitive Advantage, ASQ Quality Press; Wisconsin

Taylor Reach Group (2012). Market size, statistics & research. Retrieved from http://thetaylorreachgroup.com/industry-stats/market-size/.

Download full paperFile format: .doc, available for editing
Contact Us