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MA MANAGEMENT DISSERTATION

XIAOFENG WEN

The Investigation of Volkswagen’s Entry Strategy in China’s Car Market

By

XiaoFeng Wen

2007

MA MANAGEMENT

17,957 words

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MA MANAGEMENT DISSERTATION

XIAOFENG WEN

Keywords

Volkswagen (VW); Market Entry Strategy; Foreign Direct investment (FDI); China’s car industry; Shanghai Volkswagen; Joint Venture.

Abstract

China is one of the most attractive investment destinations for the world investors, now almost all the world car-manufacturing giants have launched their factories in this country, making huge efforts to explore their market share. And it has one of the world’s largest car markets, in the past few years sales have grown forty to sixty percent …show more content…

China’s Car Industry 5.4 Summary

57 58 60 62 64 65 65 67 69

6.0 VW’s Future Challenges and Directions
6.1 Introduction 6.2 SWOT analysis on VW in China 6.3 The Future Directions of VW in China’s Group 6.4 Summary

70 70 70 73 74

7.0 Discussion and Conclusion
7.1 Discussion 7.2 Conclusion

75 75 75 77

REFERENCE

APPENDIX
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MA MANAGEMENT DISSERTATION

XIAOFENG WEN

List of tables and figures
Figure 1.7 The structure of the dissertation Figure2.2 Modes of entering foreign markets Table 2.32 Factors affecting the FDI decision Figure 2.33 Types of FDI 12 15 19 22

Figure 2.36-1 Porter’s five force

28

Figure 2.36-2 SWOT Analysis Frameworks

33

Table2.36-3 Factors in PEST Figure 3.3: Underlying Philosophical Assumptions Table 3.5 The structure of interview questions

34 38 41

Table 4.21-1 The brief introduction of VW

44

Figure 4.21-2 The VW group structure

45

Table 4.21-3 The brands of VW

45

Figure 4.21-4 VW Production Facilities Worldwide

46

Chart 4.22-1 The Global Geography of VW

47

Table 4.22-2 Three phases of VW’s International Profile

48

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MA MANAGEMENT DISSERTATION

XIAOFENG WEN

Table 4.4 Volkswagen in China

56

Figure 5.22-1 Growth of Real GDP of China 1978-2005

60

Figure 5.22-2 China’s Real GDP 1992-2004

61

Figure 5.22-3 China FDI Growth 1984-2004 Figure 5.3 Major Players and their relationship in China’s Car Industry

61

68

Table 6.2 SWOT

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