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Market Entry Modes: Chery Cars - Essay Example

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The study "Market Entry Modes: Chery Cars" focuses on modes of entry and strategies appropriate for Chery Cars. Chery Cars, an automotive company from China, is contemplating on globalization as the strategy for expansion. The advantages and barriers of each strategy are presented…
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Market Entry Modes: Chery Cars
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Download file to see previous pages Today, principal automakers such as General Motors, Ford, Toyota, Volkswagen Daimler-Chrysler operate in global competitiveness. Advances in technology have allowed growth in the distribution system that led to globalization. For instance, Japanese technology through its innovativeness in production, modified U.S. manufacturing of automotive.
Practices of the most dynamic manufacturers are to invest in production facilities in the emerging markets. They do this either by mergers, consolidation, or partnership, a trend that is going on in automakers in order to expand.(Business Reference Services, 2004). For example, there were mergers between Volkswagen-Lamborgini; BMW-Rolls Royce, Chrysler-Mercedes Benz; Renault-Nissan-Fiat and Mazda-Mitsubishi and Kia-Volvo. Mergers of this sort are done to improve positioning in the market.
Overview of the automotive industry in the U.S.
a. American car culture. Economic analysts from the United States are perturbed about the changing behavior of the Americans on its car culture. Studies show Americans are reconsidering its relationship with their cars. Several economic factors brought about these changes. The National Museum of American History (n.d.) fosters these changes are due to environmental pollution that led to regulations on automobile pollution, gas shortages and changes in lifestyle. Suddenly, from big cars, American saw smaller cars beautiful. In mid-70s American's preference for the roomy appearance of big cars changed to smaller ones. ...Download file to see next pagesRead More
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