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Market Entry Strategies Case Study

Case Title:

Geely: The Tyro in the US market

Publication Year : 2006

Authors: Anil Kumar, Aruna.N

Industry: Automobiles


Case Code: MES0044B

Teaching Note: Available

Structured Assignment: Not Available

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In 2005, the US automobile market was dominated by the ‘Big Seven’. These major players in were ramping up production, and were developing innovative models to claim their market positions. Toyota, one among the Big Seven, experienced a steady increase in its market share. Witnessing the success of Toyota, a few Chinese automakers had plans of entering the US automobile market. Geely, a private Chinese automaker had exported its cars to almost 30 countries in Asia, the Middle East and Eastern Europe. To expand further, Geely expected to market its cars in the US by 2007. As Geely was a greenhorn in the US automobile market, analysts were skecptical whether Geely would sustain and achieve success in the US automobile market.

Pedagogical Objectives:

  • To understand about the US automobile market
  • To discuss about the problems which a new entrant into the US automobile market will face.

Keywords : Geely; US automobile market; Big Three; Big Seven; Chery; virtual gorilla strategy; CK-7151; Market Entry Strategies Case Study; John Harmer; US Safety Standards; confined test market

Contents : 
Asian Automakers in the US Automobile Market
Top three Asian automakers market share by domestic sales
Geely Automotive’s Sales in China
Competition from the Big Seven
Satisfying US Safety Standards
Reasons for decline in market share of the US Big Three
Geely’s various Car Models

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