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Report on Geely

Essay by   •  December 22, 2017  •  Essay  •  2,260 Words (10 Pages)  •  1,078 Views

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1. Introduction

This is a report on Geely, I will introduce the company background, the country background, PESTEL Analysis, Porter’s five forces Analysis, Management Recommendations and Conclusion.

2. Company Background

Geely is the only one of the top ten automobile industry in China, which was founded in 1986. Since entering the car field in 1997, has become one of the major manufacturers of Chinese auto brands. In 2009, the successful acquisition of Volvo's 100% stake in the car. On the eve of the Beijing auto show in 2014, Geely released a new brand strategy. Cancel the existing imperial, Global Hawk, the British brand, return a Geely, and with a new LOGO. August 2016, Geely in the 500 Chinese enterprises ranked ninety-ninth in the top 2016.

3. Country Background

People's Republic of China is located in the east of Asia, on the West Bank of the Pacific Ocean. It is a socialist country with the people's democratic dictatorship led by the working class. China is the world's second largest economy, the world's largest industrial countries and the world's largest agricultural country, but also one of the fastest growing countries in the world economy. China's transportation network has been expanding, the transport capacity has gradually increased.

4.  PESTEL Analysis

PESTEL analysis model, also known as large environmental analysis, is an effective tool to analyze the macro environment, not only to analyze the external environment, but also to identify all the impact on the organization's strength. It is a method to investigate the external factors of the organization, and its each letter represents a factor, can be divided into 6 major factors: political factors, economic factors, social factors, environmental factors and legal factors

POLITICAL

ECONOMIC

SOCIAL

  • type of government:    the people's congress system
  • corruption levels:        high
  • government policies:favourable to employers
  •  government tax:        Reduce import tariffs
  • gross domestic product:Continued growth
  • income levels:         Lower
  • exchange rates: Unstable
  • unemployment rates:       13.19%
  • races:                            56 nationalities
  • religion:               Taoism, Buddhism, Christianity, Catholicism, Islam
  • population size:    decline
  • interest:                 constantly changing

TECHNOLOGICAL

ENVIRONMENT

LEGAL

  • internet usage :       Super world average
  • smartphone usage:  74%
  • transportation:     evolves quickly
  • debit/credit card usage:continued improvements
  • climate:               complex and diverse
  • natural resources: abundant
  • terrain:                  Various
  • being “green”:          great attention
  • strictness:                 high
  • corruption level:        high
  • laws:                         strict and impartial
  • intellectual property: paid attention

  • Political environment analysis

The political environment is an important factor that affects the marketing of enterprises, and the political environment is the direction of the development of enterprise marketing.

The Chinese government's policy is conducive to the employer. China will focus on the development of the car is one of the pillar industries. In 1994 promulgated the "auto industry policy" and in 2004 promulgated the "automobile industry development policy" for Chinese automobile industry development mode, accelerate the Chinese automobile production enterprises the pace of product upgrades, mobilize the foreign investment of the Chinese and enthusiasm for technology transfer.

  • Economic environment analysis

Economic environment is the economic factors that can affect the purchasing power and consumption patterns of customers.

China's GDP continues to grow. From 2010 to 2015, China's GDP growth rate reached 8.1%. 2015 China's GDP GDP reached 676708 yuan, an increase of 6.9% over the previous year, for the first time since 1990, breaking 7". The main consumer products of Chinese residents are housing, education, automobile and communication equipment, etc..

  • Social environment analysis

Chinese consumers' interests are constantly changing. 60% consumers no longer believe that the car is a symbol of identity, raising the cost of cars, traffic congestion, taxi applications and other factors led to a decline in the desire of consumers to buy a car. Consumers pay more attention to the purchase price, more than half of consumers have considered buying second-hand car. In recent years, consumer interest in electric vehicles doubled. In the government launched a number of supportive policies, the next ten years the average annual compound growth rate of China's electric vehicle market is up to 30%.

  • Technology environment analysis

China's rapid development of transportation.The development of transportation in China is to restore the national economy and improve the people's lives for the purpose of. Is the government has planned, focused on the construction of transportation. The Chinese government attaches great importance to the development of the transportation industry, and vigorously invests in the construction of transportation infrastructure. Since the reform and opening up China, happened to turn the world upside down the change of transportation, has made great achievements.

  • Natural environment analysis

Enterprise environmental protection is highly valued. The release of "China made 2025" strategy, clear in order to advance the main direction of intelligent manufacturing, while the full implementation of green manufacturing.

In the green manufacturing, development and Reform Commission and other six departments have the resources recycling industry on a specific timetable. Active development of alternative fuel vehicles, to accelerate the development of pure electric vehicles, hybrid vehicles and ships, natural gas vehicles and ships. The implementation of the green transportation plan of action, improve the comprehensive transportation system planning, accelerate the construction of integrated transport system. Actively promote clean energy vehicles and the pace of the industrialization of the ship.

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