The Study Of Brilliance Auto’s ASEAN Market Entry Strategy

With the rising of Chinese automotive industry, the manufacture of Chinese automotive is on the transition from "coming in" to "going out". Car manufacturers of state owned independent brands put their strategic vision to overseas. Since2008till now, Chinese brands automotives established manufacture bases overseas, putting the products on the overseas market, competing with other brands. Along with the development of ASEAN, its purchasing power is rising step by step. ASEAN is estimated to be the3rd largest auto market in Asia after Chinese and Indian with achieving2500,000units. Numbers of world renowned car manufacture enterprises have made their strategic center in ASEAN. Therefore, Brilliance automotives should grasp the market opportunities, entering ASEAN auto market in time. Under this background, Brilliance is face with opportunities and challenges. ASEAN, the rising automotive market would bring Brilliance huge benefit with its high volume of automotives. Meanwhile, the intensive competition in ASEAN is also a test to Brilliance management ability of its overseas market.The thesis is based on the background stated above. Three aspects generally need to be clarified, when formulating overseas strategy. First, in what entry mode Brilliance should take. It is the foundation of the entry strategy and the basic type for Brilliance to enter ASEAN auto market. Based on strategic methods, the thesis states the proper way how Brilliance enters ASEAN by studying both the motivation of ASEAN market entering and entire strategic international development of Brilliance Group. Additionally, Brilliance needs to find out the proper entry path, in view of the10ASEAN countries which have different economic situation and market scales. How to analyze and evaluate the markets in the10countries would be another subject Brilliance needs to study. The proper approach will allocate Brilliance’s recourses efficiently. It means laying out the core resources to the key markets and improves the efficiency of its market entry. In addition, in view of the value chain integration perspective and the basic of the two aspects above, Brilliance relocates its value chain in ASEAN markets by analyzing, comparing and integrating ASEAN automotive industry recourses. On the other hand, the thesis also studies the problems affecting the smooth implementation of strategy with the view of the matching of overall strategy, the adaptability of products, the efficiency of organization and the feedback and management of the strategy during its practice. The thesis emphasizes practicality as well from the practical point of view.