Research On South American Market Entry Mode Of A Corp.

In recent years,China’s macro economy（GDP）has steady growth and now is ranking second in the world,and maintains an increasing tendency.Despite affection by COVID-19 epidemic in 2020 and the global economic downturn,China’s economy has quickly recovered from Q2 of 2020,and China was the only country that can achieve positive growth.From the perspective of global industrial transfer trends,as Chinese manufacturing continues to move towards the global market,Chinese manufacturing has experienced an upgrade from low-value commodities such as clothing and toys to high-value commodities such as home appliance and mobile phone in the international markets.Chinese automobile brands are also on the road to globalization.In some markets,Chinese automobile products have gained increasing market share,and their brands’ reputation has also been continuously accepted by the market.This article takes A Corp.as an example.Under this background,the research uses relevant domestic and foreign theories on corporate international market entry modes to conduct some research and analysis on the South American area that A Corp.is striving to expand.Firstly,on the basis of theoretical anatomy,use model/tools such as PEST and macro-environment analysis to conduct a macro analysis on South America and its regional automobile market,and combine the development history and current situation of A Corp.,to analyze the various problems that A company has when it enters into South American market,and the possible reasons behind.In response to these problems,construct a model of international market entry mode selection.First of all,classify the main South American markets according to the dimensions of market size,development potential,product market matching,market competitiveness,and the localization and sourcing,etc.With the consideration of regional market integration and characteristics of each key market,draft the direction for entry mode selection.In the following,make detailed analysis on typical markets:Chile and Brazil,combining with the actual operation of A Corp.and interviews with experts,finalize the entry mode selection,and then make appropriate evaluation and comments on the selection.Finally,on the basis of the above analysis and case comparison,summarize A Corp.’s South American market entry strategy,propose a market entry overall planning.At last,propose necessarily corresponding safeguard measures from the aspects of brand,products,channels,after-sales service,etc.Through this research,it has clarified the overall plan of company A’s South American market entry mode selection and entry strategy,and provided a suitable and feasible South American market expansion plan.It will also provide a reference for other Chinese auto companies to enter the international market,especially the South American market,as research examples and valuable suggestions.