Strategic Growth Plan for Chery Automotive

AbstractRanked the number one Chinese exporter of passenger cars, the fourth largest producer of passenger cars in China and the top seventh simple machine manufacturer, Chery has come a long way from its underdog days in the Chinese automotive manufacture. With the threat of increasing costs and shifty market demands, Chery can capitalize on its coalitions and marketing know-how by expanding its distribution network into developing economies and targeting China?s emerging middle class. This will set the stage for Chery to enter conjugation America as a proven manufacturer, with proprietary technologies demanded by North American consumers.

The automotive industry is one that has seen fantastic growth in recent years. In the first fivesome months of 2008, 4.5 one million million Chinese-made automobiles were produced and sold, and the China Association of Automobile Manufacturers estimate that organic auto gross revenue will exceed 10 million units, representing a full 14% annual growth (China Daily, qtd. in China Car Times). Production increased 17.05% from 2007, while sales increased 18.91%. This growth is also seen on the global scale. As of 2005, China became a net exporter of automobiles, and in 2007, it exported more than 500,000 cars and trucks to Africa, easterly Europe, Latin America, Russia and Southeast Asia. 70% of these exports bore China brands. (Gao, 2008). An judgement of the industry and its environment forms the first step of the strategic abridgment for Chery.

The first component of the external environment is the societal environment. The fella framework will be used to scan the industry?s macro-environment.

On the political front, car manufacturers are circumscribe and regulated by numerous presidential term policies.



China?s policy in limiting foreign ownership in the automotive industry has allowed Chinese firms to benefit from foreign partnership without giving up majority control to foreigners. The Chinese government has also instituted limitations on financing...

I think that was a very puff up written paper and you obviously put a potty of thought and work into this project. Punctuation is great, the writing is excellent and it seems as if you really put some extra time and campaign into this paper. I never knew so much about the Chinese Automobile industry (information overload) :).

Good Job

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