Driving the Dragon: A case study of Yulon Motor Company’s strategy for entry into the world’s largest car market
Date Issued
2010
Date
2010
Author(s)
Sharkey, Andrew
Abstract
The primary purpose of this research is to analyze the strategy behind the launch of the Luxgen automobile brand by Yulon Motor Company, and to attempt to determine whether the decision is a good one, given the current climate. This brand has been conceived with developing car markets as the primary target, particularly the mainland China market. The research finds that this strategy, while ambitious and insightful, does carry a high degree of risk, especially in areas where the dominant characteristics of the competitive environment do not match the internal resources and capabilities of Yulon Motor and its Luxgen branding arm. Some of these areas include the company’s lack of successful branding experience and also the brands narrow product range, two factors which would generally be considered major obstacles to competitiveness in the global automobile industry. However, this strategy does have potential for success in many areas also, particularly in terms of benefits gained from the engineering expertise, financial resources and geographic location of Yulon Motor Company, and if successful, will provide the company with a foothold in the valuable mainland Chinese market.
Subjects
Yulon Motor Company
Luxgen
China Automobile Market
Type
thesis
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