Study On The Strategy Internationalization Of The FAW JieFang Automotive Co., Ltd.

Entering the 21st century, modern technology and transportation as the main body of high-tech group, greatly accelerated information flow, material flow, capital flow, technology flow and personnel flow in all countries. The process of economic globalization had been accelerated. Automotive industries early adopt globalization strategy so it is a higher degree of globalization of industry now.However, with the spread of financial crisis, the global automotive enterprise had changed dramatically. International auto giants like General Motors, Ford and Daimler - Chrysler, ran in a stone wall: a substantial decline in car sales, even capital-strand break and facing the threat of bankruptcy. The development of the automobile industry is into the winter.Despite the world economy is deeply influenced by crisis, slowdown in capital flows and a drop in demand, but economic globalization would not stop.Financial crisis also had brought a number of opportunities for Chinese enterprises. International talents, the international technology, perfect overseas marketing channels and other factors will become the great attraction of overseas acquisitions. Furthermore, it will inspirit enterprises to focus on enhancing the capability of independent innovation, encouraging enterprises to develop new hybrid electric vehicle or new energy vehicle.In this case, can FAW Jiefang seize opportunities to extend volume growth? How to seize these opportunities? Significance of the research in internationalization strategy: FAW Jiefang can objectively understand its competitive advantages and core competitive advantages and weakness compared to competitor in international environment by a systematic analysis to international and domestic competitive environment, thus FAW Jiefang can get ready for scientific decision making.We introduced the research background and meaning, defined the research field, decide the content of this paper and the structure and the research method.We mainly summarized the concepts of internationalization strategy, the traditional theory of enterprise internationalization, the main theory of international firms in developing countries as well as strategy management.We present current development conditions of automotive enterprises home and abroad. We gave a few examples of foreign auto enterprises'international situation and their measures to cope with financial crisis. Meanwhile we provide two Chinese auto enterprises'international situation. Chery does better than other automotive enterprises home in activities of international business. Sinotruk is the major competitors of FAW Jiefang in the overseas market. There is a brief introduction of the FAW Jiefang of the products as well as the international status quo.We make a qualitative analysis of external environment and internal factors effecting internationalization of FAW Jiefang respectively. Financial crisis brought opportunities of industrial restructuring and international M & A, attracting the world's high-end talent to come to China, further more, the upgrading of China's international status, and national policies are conducive to the development of the automobile industry, at last, WTO Accession provide a good opportunity for the internationalization of business activities. On the other hand, the decrease in export vehicles and parts caused by the financial crisis, the lingering trade protectionism, the powerful rivals and bottlenecks in transport pose a threat to FAW Jiefang's international business activities. The advantages are mainly embodied in: the FAW Jiefang had extensive physical resources and good financial condition, had an independent core technology and price advantage, had been established some brand awareness in some regions, and had effective cooperation with other subsidiary of FAW Group's. The disadvantages are mainly embodied: no world-class brands, lack of access to the largest international market, the unenlightened management system, and weak R & D capability, compared to the world automobile giant. In this section, the EFE& IFE matrix are using to quantitative evaluation of FAW Jiefang's strategic essential factors.Based on the SWOT analysis, four strategic options are provided, which are SO strategy, ST strategy, WO strategies and WT strategy. Enterprises can make use of the great opportunity to participate in cross-border restructuring by the capital operation; can gain multinational original channels and relevant technologies and can establish overseas bases; transferring the crisis into opportunity, can establish a strategic partnership of automakers and parts suppliers; can develop and improve after-sales services.; can focus on building a global brand; can enhance the capability of independent innovation and recruitment talent vigorously. We not only focus on the domestic market, but also strengthen the "going out" co-operation.We propose safeguards for implementing internationalization strategy. Establish overseas division to deal international business. Enhance technical system and learn multinational companies'R&D mode. Recruit talent vigorously. Improve overseas marketing network and establish information feedback system in the after-sales services which make a long-term success for FAW JIEFANG. In brand building adopt a progressive manner to guarantee quality.China's overall strength and political status grow rapidly since accessed WTO eight years ago, so dose automobile enterprises. Internationalization is a need for automobile enterprises to occupy a strong market and gain a competitive edge under the increasingly competitive environment. DAW JIEFANG as the leader of automobile enterprises in China faced with the research of international strategy. China's automobile enterprises can participate in the international competitiveness step by step through the internationalization. We can predicted the day China's auto success in foreign countries from these pioneers of China's automobile enterprises...