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ustry 54
4.2.1ntensity of Entry by Potential Competitors 56
4.2.2 Threat of Entry of Potential Competitor 59
4.2.3 Threat of Substitute 62
4.2.4 Bargaining Power of Customers 64
4.2.5 Bargaining Power of Suppliers 66
4.3 Motivations of Foreign Companies in Using Strategic Alliance in Chinese Automotive Industry 69
4.4 Types of Strategic Alliance used by Foreign Companies in China 73
5.0 Discussion 77
5.1 Advantages of using Strategic Alliance in Entering Chinese Automotive Industry 77
5.2 Disadvantages of using Strategic Alliance in Entering Chinese Automotive Industry 79
5.3 Appropriateness of Strategic Alliance in Chinese Automotive Industry 82
6.0 Conclusion 85
6.1 Macro-Environmental Factors Affecting Automotive Industry 87
6.2Main Advantages and Benefits of Strategic Alliance 88
6.3What are the disadvantages and risks associated with the Chinese automotive industry? 89
6.4 Motivations of Foreign Companies in Applying Strategic Alliances 90
6.0 References 91
7.0 Appendices 102
7.1 Appendix A: Average Annual Growth Rates of GDP: 1960 – 2005 102

Table of Figures

Figure 1 Research Model 36
Figure 2 PEST Analysis of Automotive Industry in China 42
Figure 3 Increased of Urban Population 50
Figure 4 Annual Disposal Income Per Capita (China) 51
Figure 5 Porter's Five Forces Model 55
Figure 6 The Big Three and Their Foreign Partners 58
Figure 7 Sales of Car in China (2009) 60
Figure 8 Automotive Markets in the World 61
Figure 9 Criteria of Strategic Partner Selection 71

1.0 Introduction
1.1 Introduction and Overview
 Drucker (1996) explained that the biggest development in the world of business is the growth of partnership between companies in the globe. Kalmbach Jr and Roussel (1999) estimated that in 2005, strategic alliance had account to more or less 16% to 25% of medium company and 40% of the market value for more or less a quarter of the companies; therefore, it was accounted to about US$25 to $40 trillion. The increasing number of organizations subscribing to strategic alliance by establishing long-term relationship and cooperation can help in order to remove some of the vital wastes out of the most important aspect of the organization – supply chain. This is because it can help in order to protect the best commercial competitive advantage (Kwon and Suh 2004). Based on this, it shows that the era of cooperation, the competitive advantages are dependent, not just on the internal skills, knowledge and other important resources, but also pertains on the relationship of the organization with other organizations (Claycomb and Frankwick 2004).
Currently, the world has witnessed one of the most rapid economic growths in the history – the economic development and improvement of China. In 2009, China already surpassed Germany in order to get the position as the third largest economy in the world. In the said year, the economy of the country grew by 13% which resulted to the increase of the gross domestic product (GDP) to 25.7 trillion yuan (Seager 2009). As a result, many industries and sectors in the country experienced growth, due to the interests of many multinational companies (MNCs), particularly in the automotive or car industry. About 10 years ago, the annual production of cars o本论文由英语论文网提供整理，提供论文代写，英语论文代写，代写论文，代写英语论文，代写留学生论文，代写英文论文，留学生论文代写相关核心关键词搜索。