China’s economy is growing year by year. The persistent growth has affected the auto-mobile sector in particular. Increasing income and the passenger vehicle as an exclusive status-symbol has risen the private demand. In 2009, the PRC overtook the USA as the biggest automotive market in the world in production as well as in sales. This trend will certainly continue: With economic problems like stagnating real income, rising raw material prices and credit-driven consumerism in the industrial countries the importance of the Chinese market for car companies will even grow. Saturated passenger car markets in the USA and Western Europe and low rates of motorisation in new auto-motive markets like China focus the attention of the market participants on these new, growing markets. But the upward trend has already shown a downside. Increasing de-pendency on the strong politically influenced market and claims about know-how transfer are exemplary threats.
As German enterprises in this industrial sector are popular worldwide and the car-industry is the key industry in our country, the internationalisation strategies of German automotive companies in China will be analysed in the following. The trend of the Chinese automobi-le market can be summarised in a quote of Dieter Zetsche, CEO of Daimler: “Wir fahren noch nicht im höchsten Gang, wir können noch mehr”. The quote relates to the expected turnover and profit records of Daimler in 2011, which were mainly based on the success in the PRC: The Swabian vehicle manufacturer sold 198,500 automobiles in China. In spite of these difficulties, the automotive market in the PRC is very attractive, especially for the well-known German firms. However, the companies should know how to manage the problems in China. Therefore, the choice of a suitable strategy of internationalisation is crucial.
By definition internationalisation strategy is the orientation of corporate development by growth in different foreign markets. In contrast to an international market entry strategy, an internationalisation strategy is not only about starting business in a foreign market, but also developing a strategy in a market which has already been entered.
The focus of this bachelor thesis is put on the passenger vehicle market and lines out why the Chinese market is profitable and attractive for German and international manu-facturers in general. [...]
Inhaltsverzeichnis (Table of Contents)
- THE BIGGEST AUTOMOBILE MARKET OF THE WORLD
- MARKET ANALYSIS OF THE CHINESE AUTOMOTIVE MARKET
- Political-legal Factors
- Political Circumstances for the Development of the Car Industry
- China's Entry to the WTO
- Involvement in the 12th Five-Year Plan
- Legal Uncertainty
- Management of Intellectual Property
- Economic Factors
- Economic Development
- Automotive Market Situation
- Automobile Suppliers
- Automotive Financing Sector
- Socio-cultural Factors
- Distribution of Income and Disparities
- Demographic Development
- The Chinese Car Consumer
- Marketing-Mix in the Chinese Automotive Sector
- Technological Factors
- Technological Trends - The Chinese E-Mobility Programme
- Research & Development Landscape
- Infrastructure and Traffic Management
- Political-legal Factors
- INTERNATIONALISATION STRATEGIES
- Timing Strategy
- Establishing and Developing Business
- Export
- Representative Office
- Franchising
- Joint Venture
- Wholly Foreign Owned Enterprises
- Choice of Location and Partners
- Locating Strategy
- Finding a Business Partner
- Chinese Automotive Companies
- INTERNATIONALISATION STRATEGIES OF GERMAN CAR COMPANIES IN THE PEOPLE'S REPUBLIC OF CHINA
- Volkswagen Group
- Chronological Development of the China Strategy
- Country-specific Market Development
- Bavarian Motor Works Group
- Chronological Development of the China Strategy
- Country-specific Market Development
- Volkswagen Group
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
The main objective of this work is to analyze the internationalization strategies of German car companies in China, focusing on the specific challenges and opportunities of the Chinese automotive market. The text explores the historical context, key factors influencing the market, and the strategies employed by German companies like Volkswagen and BMW. Key themes covered in this work include:- The rapid growth and complexities of the Chinese automotive market
- The role of political, economic, socio-cultural, and technological factors in shaping the market
- The various internationalization strategies adopted by German car companies, including export, joint ventures, and wholly foreign-owned enterprises
- The importance of location and partner selection in navigating the Chinese market
- The specific challenges and opportunities presented by the Chinese market to German car companies
Zusammenfassung der Kapitel (Chapter Summaries)
The initial chapters offer a comprehensive analysis of the Chinese automotive market, exploring its significant growth and the factors driving its development. The first chapter introduces China as the world's largest automotive market and sets the stage for the detailed market analysis that follows. Subsequent chapters delve into the intricate details of the Chinese automotive landscape. The second chapter provides a thorough examination of the market's political-legal, economic, socio-cultural, and technological factors. This analysis highlights the unique dynamics of the Chinese market and the complexities faced by international companies. The third chapter shifts focus to internationalization strategies, examining the various approaches companies can employ to enter and succeed in the Chinese market. This chapter discusses the timing strategy, the different modes of establishing a business presence (export, representative offices, joint ventures, etc.), and the critical factors involved in choosing a location and partners. The fourth chapter delves into the internationalization strategies of specific German car companies, focusing on Volkswagen and BMW. This chapter examines their chronological development in the Chinese market, their country-specific strategies, and their overall success in navigating the challenges and opportunities presented.Schlüsselwörter (Keywords)
This work primarily focuses on the internationalization strategies of German car companies within the context of the Chinese automotive market. Key terms and concepts include: internationalization, market analysis, political-legal factors, economic factors, socio-cultural factors, technological factors, timing strategy, business establishment, joint ventures, wholly foreign-owned enterprises, location strategy, partner selection, Volkswagen, BMW, China.- Quote paper
- Patrick Schrott (Author), 2012, Analysis of the Internationalisation Strategies of German Car Companies in China, Munich, GRIN Verlag, https://www.grin.com/document/206596