Natalia Rojas Morales
International Business and Languages
Hogeschool van Amsterdam
25 April 2012
Geely’s organizational structure5
This report is an analysis of a Chinese company called Geely which has had an excellent progress during the last years in the Asian automobile market. In this report we analyze if Geely could be successful on the Indian market or not. We are looking for the internal and external characteristics of Geely and of the Indian automobile market and we will make a conclusion regarding the question if Geely could have a place in the Indian Market. This report is prepared for the International Orientation course of the Excellence program of the HvA and it perfectly agrees with the idea of the International Course, which is made to study the international, specially Asian market and economical growth. The report is divided in 7 parts, which besides this introduction include a problem definition, the current situation of Geely, the external and internal market of Geely a SWOT-Matrix, some strategic issues and recommendations.
Geely is a very important automobile manufacturer in China. Since their entrance into the market, they have had an incredibly fast growth in the Asian market becoming one of the top ten auto manufacturers in China. Their vision is to be a recognized brand around the world and this is something they have already achieving by doing business with countries as Germany and Switzerland. However, the main problem of this paper is to find out if Geely could be able to enter into one of the biggest vehicle manufacturing industry in the world, which is India. CURRENT SITUATION
Geely is one of China’s top ten auto manufacturers and also among the country’s top 500 firms. Established as an independent firm in 1986, Geely launched its auto manufacturing business in 1997 and is today a fully integrated independent auto firm with a complete auto eco-system from design and research and development to production, distribution and servicing. In 2005 Geely Automobile Holdings Limited was listed on the Hong Kong Stock Exchange and is responsible for the majority of Geely’s manufacturing operations. Over the past ten years, Geely has grown faster than any other company in the Chinese automotive industry. The rapid growth has been built on careful planning and innovation. Geely’s independent R&D in vehicles, engines, transmissions and hybrid technologies had meant that the firm is the only Chinese car manufacturer to have developed its own range of engines – including eight series of engines between 1 liter and 1.8 liters supporting both manual and automatic transmissions – plus other valuable technologies. Geely is headquartered in Hangzhou, the capital of Zhejiang province, and operates six car assembly and power-train manufacturing plants in China that are located in Lanzhou, Linhai, Luqiao, Ningbo, Shanghai and Xiangtan. These facilities enable a production capacity of approximately 300,000 cars per year.
Geely’s mission is, make good cars that are the safest, most environment friendly and most efficient, let Geely go around the world. Their vision is to let Geely be a widely brand around the world according to Mission, Vision and Value,Geely’s website (2011)
Some of the car markets Geely has entered include the Australian, Chilean, Costa Rican, Indonesian, Iranian, Nepal, New Zealand, Nigerian, Russian, South African, Syrian, Taiwanese, Turkish, Ukrainian, Uruguayan, and Venezuelan. These exports may be in the form of complete knockdown kits to be assembled in small local factories. Geely’s major strategies are product development,...