Research On Geely Internationalization Process And Its Implications For China’s Autompbile Industry

The third industrial revolution is in the brewing stage of development which will certainly have a profound impact on the global political, economic, social and technological development. As one of the earliest industries to develop international operation, auto industry’s technical research and development, product manufacturing, marketing service and brand construction are all closely related to economic globalization. Under the background of the adjustment of auto industry pattern and social form, the auto companies around the world are actively using the third industrial revolution to expand the vested interests and explore new value chains.Facing the dramatic changes of international environment, China’s auto production and sales keep the world first for six years, becoming a car power. However, as the appreciation of the China Yuan, the rising cost of overseas factories and the limitation of import tariff barriers, the internationalization of China’s automobile enterprises is full of challenges. As the representative of the independent auto brand of China, Geely Holding Group’s total assets are more than 110 billion yuan in 2014. Geely Holding Group has deeply realized that the internationalization and globalization is the inevitable trend of the global auto industry development. Only through improving self-directed innovation capability to enhance the core competitiveness, and building Geely as a global famous auto brand, can Geely Holding Group achieve a comparative advantage in the global auto market competition and further internationalization road.Under such a background, based on the relevant theories of internationalization, international competitiveness and internationalization process, this paper describes Geely Holding Group’s four stages of internationalization strategy and the international competitiveness of personnel quality, economic benefits, corporate finance and technology and innovation after the internationalization strategy implementation. This paper also uses multinational index and internationalization index to quantify the degree of internationalization of Geely. Finally, through the comparison of Geely group and Wanxiang group’s internationalization process, and combining with the development and main changes of China’s automobile industry, this paper points out Geely’s implications for China’s automobile industry internationalization process from the government and enterprise level respectively.