International Market Entry Strategy in the Automobile Sector - Geely Automobiles in India - Dissertation Example

The paper "International Market Entry Strategy in the Automobile Sector - Geely Automobiles in India" is an outstanding example of a marketing dissertation. The global automotive industry has been undergoing consolidation, mergers and acquisition as a result of overcapacity, low customer satisfaction and loyalty in the industry. Outsourcing and restructuring have also brought about changes in the industry. Emerging economies such as India have been attractive to foreign players particularly now with an educated workforce, higher disposable incomes and a robust economy. Global players have been experiencing a push away from their home markets as they experience saturation and competition. Geely, one of the largest private automobile companies in China is considering entering India. With the motivation to explore what factors influence the entry mode decision and with the aim to recommend the appropriate market entry strategy to Geely, this study was undertaken. Three research objectives were stated. This is a qualitative study based purely on secondary data and all the stated objectives have been achieved. The study finds the macro-environment in India conducive to growth. Government support is forthcoming by way of manufacturing incentives as well as in research and development. The economy has opened up for reforms and with new policies, it offers an attractive environment to foreign players. However, consumer demands are constantly changing in India and being responsive to such demands is a challenge. Car manufacturers have to adapt to local tastes and produce parts also locally. Selection of location should be evaluated based on the market and segment to be served, on the accessibility of resources and on the product to be offered. An evaluation of the market entry strategies of two companies – one of Japan and another of Korea – suggest that the timing of entry, past experience both in the home and the international market, size of the firm, location identification, technological competence and financial capability – have all to be investigated into before deciding on the entry strategy. Suzuki was the first foreign player to enter India but it entered as a minority partner while Hyundai was the first to enter India with Greenfield investment.