Swot Analysis of Geely Automotive- Case Study

Decent Essays
SWOT Analysis
The main strength of the Geely Automotive Holdings, Ltd. is their focused research and development initiatives. They invest roughly “10% of their annual sales revenue (which is significant when compared to Toyota’s 5% investment)” in research and development and focus much of their company’s efforts on their Geely Automobile Research School and the Geely Engine Research School (Dess, Lumpkin, and Eisner, 2010). These schools allow them to make improvements pertaining to gas efficiency (a huge competitive advantage in the U.S. and European markets), the meeting of EPA standards, design innovation, as well as feature innovations. These are all important things to consider for any company in the automotive
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Since 2008, they have had some ups and downs due to their acquisition of Volvo, but they are still relatively strong when in comparison to their Chinese competitors.

China has long been considered a nation that produces poor quality products. All Chinese products have long had “a reputation for shoddy workmanship” in the eyes of overseas consumers and the abysmal failure of the “Landwind SUV, made by Chinese automaker Jiangling Motors,” during its international “safety test that scored 0 out of 5 in passenger-cab protection” surely didn’t create an exception for their automobile products (Dess, Lumpkin, Eisner, 2010). This puts Geely automotive at an extreme disadvantage when compared to their industry competitors (such as Toyota, Chrysler, and Volkswagen etc.) in overseas markets as they will need to work hard to differentiate their brands from the detrimental brand recognition of other Chinese product-based company’s. They have not attempted to remedy this weakness directly (by advertising industry crash test comparisons, promoting the life span of their vehicle in comparison to competitors etc.); however, they have attempted to work around it by focusing on their research and development which increases product innovation and gives Geely unique and hard to imitate competitive advantages. This weakness of perceived poor quality by their overseas consumers will
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