Chery’s Experience And Enlightenment In Developing Brazilian Market

In recent years,the development of China’s own brand automobile has been relatively mature in China,both brand and product quality have achieved leapfrog development.Since the reform and opening up,great changes have taken place in China’s economic development,the people’s material living standard has been continuously improved,and the domestic automobile market has broad prospects.Therefore,a large number of foreign automobile enterprises have turned their attention to China and come to China to invest in building factories.In the fierce competition environment,the domestic market share of Chinese local automobile enterprises which had no advantages was divided,and the profits were declining.In order to make the long-term sustainable development and enhance the international competitiveness of enterprises,Chinese automobile enterprises must go abroad and open up foreign markets.In addition,with the deepening of economic globalization,market economy requires Chinese enterprises not to be limited to the domestic market,and Chinese enterprises must go out.As early as a long time ago,some Chinese independent brand automobile enterprises were trying to explore overseas markets,Chery Automobile Company is one of the representative enterprises.However,in the process of opening up the international market,enterprises are not smooth sailing,there are still many problems.Chery Automobile officially opened up the Brazilian market in 2009.With its advantages,Chery automobile quickly gained a foothold in the Brazilian market.However,due to external reasons such as the recession of Brazil’s economy and the downturn of the automobile market,as well as Chery’s own problems,Chery was almost once squeezed out of the Brazilian automobile market.But Chery solved the crisis in time through a series of measures.In the process of case analysis,first of all,the course of Chery’s development of Brazil market is sorted out,which is divided into three stages: direct export,investment and factory building,and joint venture.Secondly,through the analysis,it is found that Chery’s motivation to explore the Brazilian market is divided into external and internal factors,the external factors mainly include Brazil’s comprehensive strength,sufficient labor force,rich natural resources and large international automobile market,etc.;the internal factors mainly include the decline of Chery’s sales in the domestic market,the brand value to be improved,etc.At last,it finds out that the main problems of Chery in Brazil market are immature core technology,unsustainable low-cost marketing,low corporate image,low brand recognition,insufficient after-sales service,and lack of composite talents and transnational management experience.In view of the above problems,Chery has solved these problems through a series of measures.The measures mainly include mastering the core technology,establishing a good brand image,improving the service network system,improving after-sales service,strengthening the introduction of international talents and training management experience.Based on the SWOT analysis of Chery’s development of Brazil market and the process of Chery’s development of Brazil market,this paper finds that Chery has made success by taking advantage of its own advantages and opportunities,but it also has the risk of exiting the market due to its own disadvantages and threats.Through empirical analysis,Chery’s R &D investment,Brazil’s per capita GDP,Brazil’s population and transportation cost are determined It is an important influencing factor for Chery Automobile in the process of developing Brazilian market.After Chery Automobile complements its own shortcomings,considers the influencing factors and adopts the corresponding market entry mode in different periods,it finally "turns the corner into safety".Through the case analysis of Chery’s development of Brazilian market,this paper provides the following experience and Enlightenment for China’s automobile enterprises to "go global" : first,China’s automobile enterprises must strengthen brand awareness and pay attention to brand image in overseas market,which can be started from the correct positioning of brand,promoting cultural integration,enhancing brand image and strengthening cooperation with local enterprises;second In terms of improving the relevant service system,China’s automobile enterprises should standardize the service standards,improve the overall quality of personnel,and understand customer needs through regular return visits to customers,and establish customer files;thirdly,controlling enterprise costs is Chery’s biggest advantage in the Brazilian market,and China’s automobile enterprises should learn from it.Finally,in terms of enhancing brand competitiveness,China’s automobile enterprises should increase investment in research and development,improve independent technology,strengthen cooperation between schools and enterprises,and cultivate professional and technical talents in automobile industry.