The Case Study:Cross-regional Expansion Strategy Of GAC Group

At present, China’s automotive industry exists to repeat construction, excess capacity,and the industrial structure is not reasonable. In early2009, the country has issued carindustry adjust and revitalization plan explicitly, encouraging FAW, DongFeng, SAIC,Changan and other large car company in M&A implemented nationwide. Support BJC,Guangzhou Automobile Group(GAC), Chery, Sinotruck, such as auto enterpriseimplementation of regional M&A. With the present situation of national policy and industrialdevelopment, cross-regional expansion mergers&acquisitions become automobileenterprises’ main form of development.From the start of the research background, this paper briefly describes the basic situationGAC, the GAC’s external environment and internal environment is analyzed, and thenthrough the GAC advantages and disadvantages, opportunities and threats, the paper gives thestrategic positioning of GAC and implementation choice. After the research in this paper, theGAC group faces the opportunity of car market development and policy support, but it isfacing industry excess capacity, policy, technology research and development for newinvestment limited, which is the threat of increasing investment; The GAC group has afinancial, research and development, own brand, market, a sound industrial chain etcadvantages, simultaneously also has disadvantages such as the capacity to grow, not completeproduct line; Market, brand, development and manufacturing of GAC constitutes the corecompetence; GAC group’s strategic development direction is cross-regional development;Strategy implementation is M&A; A selection object is the merger of Hunan Changfeng Cars,because the two has the capacity, products, research and development and marketcomplementary to each other.Through the above work, this study has important theoretical and practical significancefor the domestic auto enterprise development strategy formulation, implementation and theobject choice of M&A, and so on.