Zhejiang Geely Holding Group's Development Strategy

The automobile industry is one of the important industries in national economy, it has many characteristics, such as Capital intensity, technology intensity, talent intensity and strong comprehensive. The automobile industry developed unbalance around the world. In those developed country, automobile industry start early and the industrial foundation is abundant. In our country, the automobile industry starts very late, it has mainly experienced three development phases since the reform and open policy, namely introduction joint capital, imitation innovation and independent innovation. In the independent innovation's historical trend, one batch of independent brand automobile enterprise arises at the historic moment.Zhejiang Geely Holding Group as the first private capital and independent brand automobile enterprise is facing more and more stern challenge. On the one hand, the number of independent brand automobile enterprises had increased from 2 in 1996 to 36 in 2008, more and more productivity reduced the automobile enterprise's profit space. On the other hand, with the integration of the world economics, the international automobile giant speeded up the global layout and accelerated to occupy Chinese market. However, the economy crisis has initiated the global automobile industry shake fiercely in 2008. Most of the international automobile giant cut staff, reduced production, adjusted annual objectives and postponed its international expansion's step. With the influence of economic crisis, the reorganization of global automobile industry is unavoidable. In front of the "Threats" and the "Opportunities", where is Geely 's outlet? What competition strategy can make Geely impregnable in the intense market competition?Through the introduction of complete cars industry and spare parts industry of Zhejiang Geely Holding Group. This article adopted the Porter five strength competition model, the market interaction model and the SWOT analyze model combined with the related value chain's knowledge of the automobile industry to analyze the competition environment of Geely and the "Superiority" and "Inferiority" of Geely's interior environment. Based on this analysis, the article put forward some suggestions to Geely automobile's development strategy. The main body of the article includes five parts. The first part introduces the situation of the world automobile industry and the development course of our country automobile industry, then points out the "Opportunities" and the "Challenges" which the independent brand automobile enterprise is facing. The second part introduces the complete cars industry and the spare parts industry of Zhejiang Geely Holding Group, then point out the market position and value chain distribution of Geely Automobile. The third part adopts Porter's five forces competition model and the market interaction model to analyze the competition environment of Geely automobile. The fourth part uses the SWOT analysis model to discuss the "threat" and the "opportunity" around Geely and the "superiority" and the "inferiority" in Geely. According to the analysis above, the fifth part puts forward some suggestions on the development strategy of Zhejiang Geely Holding Group: First, to carry out the multi-brand strategy, carries on the brand conformity and reposition; Second, to expand sales channels, to develop the dealer network and to conformity dealer resources; Third, to implement capital operation.