Internationalization Strategies of the Chinese Automotive Industry: Challenges and a Plan for Going Global

In: Business and Management

Submitted By 123456abc
Words 14540
Pages 59
Nour Shaker

Supervisor: PhD. Jose Ferraz-Nunes Examiner: PhD. Bengt Kjellen

Master’s thesis in International Business 15 ECTS Department of Economics and Informatics University West Spring term 2010

ABSTRACT
Over the past two decades, the open-door of the market supply in China has had a massive impact on the automotive market. This development contributes to the globalization of the automobile industry that involved the integration of the Chinese domestic market into the international markets. Among many reasons, motivation to gain access to industrialized markets and to gain access to superior technology, management resources and knowledge are the most driving factors of the Chinese automotive industry for the internationalization and going abroad strategy of China´s automotive industry. This study investigated whether different external globalization drivers and internal organization factors have differential effects on various dimensions of China´s automakers firms’ global strategy.

Most of the studies written about global strategies have implemented only either of the internal or the external drivers of the internationalization of the firms. The contribution of the paper introduces a more comprehensive model on the global expansion of a firm. This paper concludes that China´s automotive industry has some competitive advantages such as low cost, while, facing a number of challenges that hinder the internationalization of Chinese automobile companies. It also shows that multiple factors play an important role in firms' internationalization global strategy plan. It is thus essential that the interaction among independent variables is considered in the determination of global expansion strategy.

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