Study On International Market Entry Mode Choice For Chinese Automobile Enterprises

With the global automobile market growing slowly and the more and morecrowded domestic automobile market, the Chinese automobile enterprises that survivein the cracks have been involved in the process of internationalization. For eachenterprise who wants to begin the process of internationalization, the first problem toface is the choice of international market entry mode. The key to the success ofenterprise internationalization is how to choose the proper international market entrymode regarding to the environment and its own characteristics. Unfortunately, mostliteratures at present are focusing on the multinational corporations (MNCs) fromdeveloped countries, ignoring the characteristics of automobile enterprises indeveloping countries and their plight of entry mode choice.This paper firstly reviewed the literatures of international business theory andinternational markets entry mode theory, on the basic analysis of characteristics ofChinese automobile companies access to overseas markets, studied the factorsaffecting the international market entry mode selection systematically, put forwardsuitable model for Chinese automobile companies to enter the international market,and take entry mode choice of Great Wall Motor Company Limited in Russian marketas an example, then choose the options in accordance with the proposed model, andfinally made recommendations accordingly to the internationalization of Chineseautomobile companies.The first part described the main research background, purpose and meaning,content and structure. The second part is the literature review of the international tradetheory and the international market entry mode theory, illustrated the types ofinternational market entry mode and their intrinsic characteristics, and summed up theinternational market entry mode factors and general model. The third part analyzed the situation of the Chinese automobile market entry current situation according tonational level, industrial level, corporate level and product level, and proposed ainternational market entry model applicable to Chinese automobile enterprises. Thefourth part discussed the case of the entry mode of the Great Wall Motor into Russianmarket. On the discussion of Russian national environment, the Russian car market,Great Wall Group status, internationalization degree of Great Wall Motor, brieflypredicted and analyzed its entry mode. The fifth part made recommendations for theinternationalization of Chinese automobile industry. And the sixth part came to theconclusion and pointed out the future research directions.