Geely: A Case Study on the Trend Following Volvo-Owner
This chapter focuses on Geely, a Chinese car manufacturer, who is not even a leading player in its domestic market, but has recently become the largest exporter of cars from China. This has been done through both acquisitions and fast technological develo
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Abstract
This chapter focuses on Geely, a Chinese car manufacturer, who is not even a leading player in its domestic market, but has recently become the largest exporter of cars from China. This has been done through both acquisitions and fast technological development. Geely follows a clear strategy and aims to become a leading global player through its quality products, great safety standards, and excellent sales and after sales services, as well as through competitiveness in pricing. Strategic investments worldwide, acquisitions of renowned companies such as Volvo, and continuous development of its human capital, its know-how and product range all place Geely into a position where they should be considered as a serious competitor, certainly in the next decade. The reason for Geely’s success can be summarized in the following points: good enterprise culture and philosophy, the right time and right place, and “Go with the trend”: good strategies for different times. Building upon its strength, it is very likely that Geely will become a world brand.
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Introduction
That China is a growing market with enormous resource and human potential has been common knowledge over the past years. However, that some of the largest corporations worldwide are Chinese companies is a little less well known, especially as these companies have not made international appearances but rather built on their own local market potential.
G. von Bismarck • Y. Zheng (*) The Honor’s Program of the International Business School, Hanze University OAS, Groningen, The Netherlands e-mail: [email protected] # Springer International Publishing Switzerland 2016 R.T. Segers (ed.), Multinational Management, DOI 10.1007/978-3-319-23012-2_3
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G. von Bismarck and Y. Zheng
In recent years, some of these companies have started on a mission to conquer international markets as well. Since China is being flooded by international companies, why should Chinese companies not also flood the world? The emergence of Chinese corporations on the European market could have been noticed by the careful spectator in recent years. Huawei and Lenovo are two examples which have successfully made a name for themselves in the European market. These two examples are electronic companies but the Chinese industry in not limited to this. This chapter focuses on Geely, a Chinese car manufacturer, who is not even a leading player in their domestic market, but has recently become the largest exporter of cars from China. This has been done through both acquisitions and fast technological development. Geely follows a clear strategy and aims to become a leading global player through its quality products, great safety standards, and excellent sales and after sales services (Geely 2014), as well as through competitiveness in pricing. Strategic investments worldwide, acquisitions of renowned companies such as Volvo, and continuous development of its human capital, its know-how and product range all place Geely into a position where they should be considered as a serious compe
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