Study On The International Strategic Alliance Of The Auto-parts Enterprise Based On "Weichai Power"

Since the entering into the WTO in2001, China’s automobile industry has experiencedrapid development. At present, China has ranked first in the world automobile production andsales quantity five years in a row. As the base of the automobile industry, the development ofthe auto-parts industry means a lot. Currently, with so many foreign auto-parts enterprisetaking up the China’s market, the Chinese auto-parts company are facing some problems suchas: lacking core techniques and product innovation, can’t reach scale-benefits and so on,which, makes the whole industry uncompetitive in the global market. As an innovativeorganization form, International Strategic Alliance (ISA) first appeared in the auto industry,which plays a significant role in the raise of the competitiveness of China’s auto-partsenterprise as well as its entering into the global market. Under this circumstance, theresearch on ISA practice in China’s auto-parts enterprise has practical significance in thedevelopment of the auto-parts industry. First, this paper sorted out the existing studies onISA in auto-parts and summarized the shortcomings and innovative points of those literatures.Then, the second part introduced the present situation and the existing problems of China’sauto-parts industry, and the necessity of developing ISA. On this basis, this paper putforward some suggestions on how to develop ISA on three aspects: how to choose the form,how to select the subject and the partner, and how to manage the ISA effectively. Then, thethesis chose the Weichai Power Co., Ltd. as the subject of the case study for its ISA practicesare comparably rich among China’s auto-parts enterprises. Moreover, in order to find theexisting problems and worthy lessons for other peers to refer to, the relative theory was usedto analyze the proceeding of three different ISA practiced by Weichai Power from fouraspects: category, motive, partner selection and the performance of the ISA. The study findthat the worthy practices are: the diverse form of the ISA, the proper selection of the ISAtarget product and partner and the combination of domestic merge and ISA; on the contrary,lessons are to establish an active learning mode and to negotiate a reasonable cost of ISA.Hope the above findings can offer some theoretical and practical reference for China’sauto-parts enterprises to participate in ISA and move towards the global market.