Chery Auto's Success Story

            
 
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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.



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Case Details:

Price:

Case Code : BSTR377 For delivery in electronic format: Rs. 400;
For delivery through courier (within India): Rs. 400 + Rs. 25 for Shipping & Handling Charges

Themes

Growth and Expansion Strategies
Case Length : 13 Pages
Period : 2003-2010
Pub Date : 2010
Teaching Note : Not Available
Organization : Chery Auto
Industry : Automobile
Countries : China

Abstract:

China based Chery Automobile is one of the top ten car manufacturers and the leading exporter of cars in the country. Started as an automotive company by the Wuhu government in 1997, Chery designed engines for cars. After finding no buyers for its engines, it decided to build its own car. Chery entered into tie-up with another automotive company which had license to sell cars to retail customers in China. After obtaining its own license, Chery implemented a four-phase strategy to develop its technical strengths. Chery started exporting cars as early as 2001 and became the largest exporter of cars among the Chinese car companies. Chery expanded globally to have its presence in over 70 countries by 2009.

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Issues:

Study and analyze the competitive strategies of Chinese automobile companies.

Understand how Chery Auto used available resources effectively to manufacture cars.

Examine how a startup company could develop R&D capabilities by collaborating with other firms.

Study the globalization strategies of Chery Auto.

Evaluate the challenges faced by Chery Auto in the near future.

Contents:

  Page No.
Introduction 1
Background Note 2
The Growth Strategy 3
Going Global 5
The Challenges 7
The Road Ahead 9
Exhibits 10

Keywords:

Chery Auto, Chinese Automobile Industry, Independent Innovation, Pricing Strategy, Car Manufacturing Industry, Reverse Engineering, Shanghai Automotive Industry Corporation, Six Sigma Process, Independently-designed Models, Intellectual Property Rights, Branding, Vertical Integration, Global Expansion Strategy, Safety and Emission Norms

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