Case Analysis of Cross Border Strategy in China's Automotive Industry

Running Head: GLOBAL BUSINESS MANAGEMENT
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Case Analysis
(Students Details)

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1. Industry sector
The industry sector considered is Automotive. The automotive industry is considered as the most
innovative industry in context of design, manufacturing, marketing and development. The
automotive sector is evolving day by day which make this as interesting sector to study and
analyze (Plunkett Research, Ltd, 2010).
2. Domestic Market
As the project requirement is to understand Cross border strategy. The market considered is the
country which has shown immense performance in automotive industry. The China automotive
is considered as the most innovative industry as the companies are modernizing each phase
including marketing (Chin, 2010). Hence the country selected is China as domestic market.
3. Major Companies
The major companies considered are on the basis of innovative products the companies have
produced and the years of services given to the industry (ChinaAutoWeb, 2016). These are:
 Beijing Automotive Industry Ltd
 SAIC Motor
 Changan Automobile
 Dongfeng Motors
 Brilliance Auto
 Faw Group
4. History
The automotive industry in China has been the largest in the world on the basis of the units
produced from year 2008. The most of the automotive produced in china are sold in china itself.
The first motor produced in china was truck in year 1928. With that the automobile sector has
been evolved to producing the best high-tech cars available in the world.

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5. Rationale
The purpose for selecting this country and sector is that China has many automotive industries
that have given outstanding performing in the global market and stills aims at creating its
presence worldwide. The Automotive industry in china is providing good quality products and
great customer service which has made this market attractive for investors (Suttle, 2019).
6. External Framework
(I) Michael Porter’s Five Force Model
The Porter’s Model is considered to analyze the implementation of strategies and to gain
knowledge on expansion of operation of automotive firms of China. The main aim is to identify
and analyze what challenges will the company face and how it can be solved. The Porter’s five
force concept is applied to demonstrate a better and a clear understanding of the market
condition and customer behavior. Porter’s model helps the organization to understand the
external factors which impact the growth of the sector.
(II) Application of the frame work
The following mentioned forces will help an automotive industry to determine the level of
competition in this sector and helps the firms to develop and set their strategies in accordance to
the analysis.