The Study Of Entry Strategies Of Weichai Power Into Southeast Asia Market For Its Automotive Business

When an enterprise develops at a certain stage, it will seek overseas markets. As one of automobile manufacturing enterprises with strength, Weichai Power is carrying out the global strategic layout, making Southeast Asia Markets-- one of the most dynamic markets in the world its main target market. The main purpose of this research paper is to provide strategies of the entry of Weichai Power automobiles into Southeast Asia. The highlights of the paper includes the following four parts: Part One: analyze the main business of Weichai Power and its development in the Southeast, and include that it is strategically important for Weichai Power to develop automotive business in Southeast Asia. Part Two: by analyzing the external threats and opportunities and internal advantages and disadvantages facing the entry of Weichai Power in Southeast Asia Markets through SWOT, it is concluded that threats outweigh opportunities, disadvantages outweigh advantages. Weichai Power can take the advantage of external opportunities and overcome the internal disadvantages. Part Three: based on the method of strategic behavior, analyze the choice of modes for the entry of Weichai Power into Southeast Asia and investment entry mode should be adopted. Part Four: develop specific strategies for all aspects of the value chain: production, sales, purchasing, research and development. As for production, Thailand, as its automobile production base, radiates to the surrounding countries. In the sales link, for large scale markets--primary and secondary markets, take the strength of cooperation or merging with powerful franchisers. For smaller scale markets--third and fourth markets, take the ways of authorizing franchisers. In purchasing link, for one thing, strengthen the cooperation with local auto parts suppliers and establish a long-term cooperative relationship. For another thing, enhance its own auto parts production. As for R&D, establish a R&D center in Thailand and intensify R&D efforts on the automobile.