EAN: 9783954890866

STRATEGIES OF GERMAN CAR COMPANIES IN CHINA - P...

In 2009  the PRC overtook the USA as the biggest automotive market in the world in production
as well as in sales. 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 motorization in new automotive markets like China focus the attention
of the market participants on these new  growing markets. The focus of this study is on the
passenger vehicle market and lines out why the Chinese market is profitable and attractive for
international manufacturers. Moreover  it shows how to deal with the problems and how to use
the opportunities regarding the dimensions of internationalization. Firstly  the PEST-Analysis
of the Chinese automobile market lines out the political-legal  economic  socio-cultural and
technological factors. In such a rapidly changing and growing as well as culturally completely
different country like the PRC  the framework conditions and circumstances are of big
importance for foreign enterprises willing to do business there. The third chapter deals with
possible internationalization strategies for China by showing possibilities of timing and
market development strategies plus options for locating business markets. This is also further
established in the fourth chapter  in which the internationalization strategies of two German
enterprises are analyzed. Furthermore the fourth chapter analyses the internationalization
strategies of VW and BMW. At the end of this thesis  the results are summarized in two
SWOT-analyses of both firms including measures on how to deal with threats in the PRC and on
how to benefit from strengths and opportunities.

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