Geely Holding
 Group
 Marketing Essay

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Markets,
Marketing
and
Strategy
Essay
 
 
 
 
 
 
 
 
 
 
 
 
 
 Strategy

This
essay
will
attempt
to
identify,
analyze
and
discuss
the
strategic
issues
in
 Geely
Holding
Group
using
industry
structure
and
dynamics.
There
are
five
 competitive
forces
that
shape
the
strategy
of
a
company,
threat
of
new
entrants,
 bargaining
power
of
supplier,
bargaining
power
of
buyers,
threat
of
substitute
 and
rivalry
among
current
competitors.
However,
as
covering
all
five
forces
will
 be
beyond
the
scoop
of
this
essay,
it
will
be
focusing
on
threat
of
new
entrants
 and
rivalry.

 Even
though
Geely
Holding
Group
exports
cars
on
top
of
selling
in
its
local
 market,
its
main
market
is
the
China’s
automobile
industry1.
With
China’s
 automobile
market
growing
rapidly
in
the
last
few
years,
it
has
become
one
of
 the
biggest
automobile
markets
in
the
world,
this
mean
that
the
existing
firms
in
 the
industry
will
have
to
be
aware
of
new
entrants
into
the
industry.
Gerenally,
 barriers
are
high
in
an
automobile
industry,
and
there
are
several
main
factors
 contributing
to
this.
One
of
the
factors
is
supply‐side
economics
of
scale.
When
 firms
have
high
output,
it
allows
them
to
cut
cost
in
production
by
buying
in
bulk
 and
because
they
have
huge
buying
power,
supplier
will
not
want
to
lose
them
as
 customers
and
give
them
better
deals.
They
will
also
be
able
to
spread
cost
over
 more
units
for
their
marketing,
research,
services
and
distribution.
This
means
 that
new
entrant
will
have
a
much
higher
cost
of
production
unless
they
are
able
 to
come
in
on
a
large
scale.
With
1.2
million
Geely
cars
on
the
road
globally2,
this
 is
certainly
an
advantage
that
Geely
has
over
smaller
new
entrants.

 Established
firms
also
enjoy
demand‐side
benefits
of
scale.
When
more
people
 use
the
product,
it
will
assure
people
that
the
product
is
trustable,
causing
even
 more
people
to
be
willing
to
pay
for
the
product.
With
products
like
automobiles,
...
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