Essay about Business Strategy Analysis of Geely Firm

3406 Words Oct 26th, 2012 14 Pages
Business Strategy Analysis of Geely Firm
Table of Contents

1.0 Executive Summary 2
2.0 Introduction 2
3.0 Internal environmental analysis 4
4.0 External Environment Analysis 5
4.1 Political factors 5
4.2 Economic factors 6
4.3 Social factors 6
4.4 Technological factors 6
4.5 Environmental factors 7
4.6 Legal factors 7
5.0 Competitive environment analysis 7
5.1 The threat of the entry of new competitors 8
5.2 The threat of substitute products or services 8
5.3 The bargaining power of customers 8
5.4 The bargaining power of suppliers 9
5.5 The intensity of competitive rivalry 9
6.0 Key strategic competencies identification 10
6.1 SWOT Analysis 10
6.2 Key strategic resources identification 11
7.0 Evaluation to the
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4.0 External Environment Analysis

It is believed that no enterprise can exist in isolation, because the survival and development of an enterprise are always affected or restricted by changes in the external environment. Hence, external environment analysis should be made before confirming and evaluating the business strategy of the enterprise. The external environment analysis will be made in this section by using the PESTEL method (Peng, & Nunes, 2007; RapidBI, 2011) to identify and explain the factors from external environments around Geely.

4.1 Political factors

Along with the country's macro-control to automotive industry in China, some new laws and regulations are issued in last years. National Development and Reform Commission of China issued a notice to the automotive industry, which caused a stir in this industry. A series of new regulations made the car industry go though a totally transformation and until today some influence still works which can be summarized as follows:
 Becoming a member of WTO brings the challenges as well as the opportunities to Chinese auto market.
 “Auto industry development policy” infuses a positive strength to

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