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ANALYSIS ON STRATEGIC ALLIANCE IN AUTOMOTIVE INDUSTRY IN CHINA
Abstract
 The automotive industry of China is considered as one of the most attractive industries in the world because of opportunities it can offer to both domestic and foreign investors. This is because of the growing demands of cars in the country, due to the improvement of China’s economy and due to the supports and aids offered by the Chinese government to the pursuit of improvement personal consumptions. In addition, Chinese government is also implementing different rules, policies and regulations that will smooth the process of entering the automotive industry of China. This includes current membership of the country in WTO, which had helped to lessen the tariff. In addition, companies are also allowed to establish wholly owned companies in the country. However, this procedure is not easy due to the complexities of China’s culture, tradition, social aspect and politics, which make it hard for foreign companies to establish its presence in the country.  This is the reason why the use of strategic alliance in China is very popular, considering the fact that the government is requiring foreign investors to enter the market by cooperating with a local Chinese player, thus sharing know-how and information.
 This paper analyzes the appropriateness of strategic alliance in the automotive industry in China, focusing on its advantages and disadvantages for the foreign investors in the country. It will also tackle the different factors which influence and affect the entire automotive industry, which make it difficult for foreign investors to enter or penetrate with the use of other market entry mode
Table of Contents
Abstract 1
Table of Contents 2
1.1 Introduction and Overview 6
1.2 Aims and Objectives 8
1.3 Research Questions 9
1.4 Scope, Background and Significance of the Study 9
2.0 Literature of the Study 10
2.1 What is Strategic Alliance? 10
2.2 Advantages and Disadvantages of Strategic Alliance 12
2.2.1 Advantages and Benefits of Strategic Alliance 12
A. Speed of Entry to the New Market 13
B. Risk and Cost Sharing 14
C. Acquiring New Technologies and Learning New Skills 14
D. Offering Economies of Scale 15
2.2.2 Disadvantages and Risks of Strategic Alliance 16
A. Opportunistic Behavior of Partner and Difference of Objectives of Parties Involved 16
B. Loss of Competitive Advantage 17
C. Lack of Control 18
D. Difference of Culture and Political Condition 18
2.3 Types of Strategic Alliance 19
A. Joint Venture 20
B. Equity Strategic Alliance 20
C. Nonequity Strategic Alliance 21
2.4 Automotive Industry in China 21
2.5 Strategic Alliance as Mode of Entry in Chinese Automotive Industry 23
2.5.1 Reasons for Choosing Strategic Alliance as Entry Mode 25
3.0 Methodology 29
3.1 Research Method 29
3.2 Research Strategy 32
3.3 Research Design 34
3.2 Data Collection 37
3.3 Data Analysis 37
3.4 Importance of the Study 39
3.5 Limitations of the Research 39
4.0 Findings and Analysis 41
4.1 PEST Analysis 41
4.1.1 Political 44
4.1.2 Economic 47
4.1.3 Social 49
4.1.4 Technological and Environmental 52
4.2 Porter’s Five Forces Analysis of Chinese Automotive Ind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。