A Study Of Differentiation Strategy Of "New Geely" Auto Company Based On Cost Control

In 2009, China officially overtook the United States for the first time as the world's largest car market. Chinese market is gradually developing into the most competitive car market. Various international auto giants continually launch new products in Chinese market, which take the Chinese market as their most important market in the world.This makes the domestic automobile manufacturers face more brutal competition of their own brands in the market. In 2008, the global financial crisis had brought serious losses to the major international car manufacturers and also let to M & A wave in the global automotive industry. Zhejiang Geely Holding Group (hereinafter referred to as Geely Auto), as China's first private capital own-brand car company, also faces severe impact from the market. But it fully seized the opportunity of the financial crisis and purchased the world-class brand Volvo (in this thesis, we will name the Geely Auto as "New Geely" after acquired Vovlo Cars), which makes it has the fully initiative in the fierce competition in the market. However, with the strategic adjustment of Geely Auto and its acquisition of Volvo, it still has a series of questions to face from product to brand and management. In the face of such opportunities and threats, where should "'New Geely" Auto go? What kind of market competition strategy can make "New Geely" Auto be successful in the fierce market competition?Based on the analysis of "New Geely" Auto company after acquired Volvo Cars, by using some knowledge of Porter Five Competitive Forces Model, SWOT analysis model, PEST analysis etc., this paper will analyse "New Geely" company's external competitive environment, the ability of internal resources, competitive market position, cost control ability and cost structure etc.. On this basis, this paper will study the formulation of the competitive strategy of "New Geely" company and make the conclusion that "New Geely" company should build the differentiation competitive strategy based on cost control.This paper includes six main parts.The first part is an introduction, which proposes problems to be studied, the relevant competitive strategy theory and research content and methods of this thesis. The second part is a brief introduction of Geely Auto, and the reason of Geely acquired Volvo Cars. The third part is the application of Porter Five Competitive Forces Model and the PEST model to analyze external competitive environment of "New Geely" company and summarize the external opportunities and threats. The fourth part is an analysis of "New Geely" company's internal environment and resource capacity, e.g. competitive market position, cost control ability and cost structure and opportunities and problems of Geely after acquired Volvo. The fifth part is an analysis of competitive strategy options of "New Geely" company.The sixth part proposes four formulation plan of differentiation strategy based on cost control, and also provides the suggestion for the implementation procedure and the relative supplementary methods. In 2009, China officially overtook the United States for the first time as the world's largest car market. Chinese market is gradually developing into the most competitive car market. Various international auto giants continually launch new products in Chinese market, which take the Chinese market as their most important market in the world.This makes the domestic automobile manufacturers face more brutal competition of their own brands in the market. In 2008, the global financial crisis had brought serious losses to the major international car manufacturers and also let to M & A wave in the global automotive industry. Zhejiang Geely Holding Group (hereinafter referred to as Geely Auto), as China's first private capital own-brand car company, also faces severe impact from the market. But it fully seized the opportunity of the financial crisis and purchased the world-class brand Volvo (in this thesis, we will name the Geely Auto as "New Geely" after acquired Vovlo Cars), which makes it has the fully initiative in the fierce competition in the market. However, with the strategic adjustment of Geely Auto and its acquisition of Volvo, it still has a series of questions to face from product to brand and management. In the face of such opportunities and threats, where should "New Geely" Auto go? What kind of market competition strategy can make "New Geely" Auto be successful in the fierce market competition?Based on the analysis of "New Geely" Auto company after acquired Volvo Cars, by using some knowledge of Porter Five Competitive Forces Model, SWOT analysis model, PEST analysis etc., this paper will analyse "New Geely" company's external competitive environment, the ability of internal resources, competitive market position, cost control ability and cost structure etc.. On this basis, this paper will study the formulation of the competitive strategy of "New Geely" company and make the conclusion that "New Geely" company should build the differentiation competitive strategy based on cost control.This paper includes six main parts.The first part is an introduction, which proposes problems to be studied, the relevant competitive strategy theory and research content and methods of this thesis. The second part is a brief introduction of Geely Auto, and the reason of Geely acquired Volvo Cars. The third part is the application of Porter Five Competitive Forces Model and the PEST model to analyze external competitive environment of "New Geely" company and summarize the external opportunities and threats. The fourth part is an analysis of "New Geely" company's internal environment and resource capacity, e.g. competitive market position, cost control ability and cost structure and opportunities and problems of Geely after acquired Volvo. The fifth part is an analysis of competitive strategy options of "New Geely" company.The sixth part proposes four formulation plan of differentiation strategy based on cost control, and also provides the suggestion for the implementation procedure and the relative supplementary methods.