Research On Strategic Transformation Of Geely Automobile Company

As one of the important pillar industries of the national economy,the automobile industry has made great contributions to China’s economic development since the reform and opening up.As an important indicator of the overall level of a country’s industrial manufacturing industry,the automobile industry has a strong ripple effect and driving effect,which is of great help to the increase of employment rate.China’s auto industry has ranked first in the world for 12 consecutive years,with an annual sales volume of more than 25 million vehicles in 2020.As the industry leader,Geely Auto produces and sells more than 1.3million vehicles annually,becoming the first self-brand car enterprise in China to produce and sell 10 million passenger cars,and ranking No.1 in the production and sales of self-brand automobiles in a row.However,in recent years,with the increase of economic downward pressure,economic growth slowed down.Since 2019,the production and sales of major automobile brands are not optimistic.Of the 20 major domestic passenger car manufacturers,only 4 achieved positive growth,Geely also saw its first sales decline since 2015.At the same time,the technology,quality and reputation of state-owned brands are getting better and better,and the production and sales of new energy vehicles are increasing year by year.China’s automobile will usher in the "great development",the traditional car enterprises to carry out strategic transformation is imminentTherefore,this paper takes Geely Automobile Company as an example,comprehensively analyzes the objective background of the company’s implementation of strategic transformation,and elaborates the purpose and practical significance of the research on the strategic transformation of enterprises.Based on the existing theoretical research results of scholars at home and abroad,this paper analyzes the necessity of implementing strategic transformation by analyzing the current development and operation situation of Geely Automobile Company.Using the PEST model and combining with the macro background of China at the present stage,the policy,economic,social and technological environment faced by Geely Automobile Company is comprehensively analyzed;By using the SWOT tool and combining with the development status of China’s and the global automobile industry,this paper analyzes the advantages,disadvantages,opportunities and threats of Geely Automobile Company’s strategic transformation.This paper expounds the internal and external motivations of Geely’s strategic transformation.The transformation direction of Geely Automobile Company in operation,technology research and development,product positioning,brand and price,as well as the talent,culture,organization integration strategy adopted in the actual operation process,technology,cost,product leadership strategy,brand,cooperation diversification and other strategic choices were comprehensively analyzed.After the implementation of strategic transformation,the effects and advantages of Geely Automobile Company in five aspects,including research and development ability,operation ability,profitability,sales and service ability and financing ability,are evaluated,and the risks and challenges that may be faced in the follow-up management process are forecasted and improvement suggestions are put forward.It is expected to take Geely Automobile Company as an example to provide reference for the formulation of strategic transformation plan for China’s self-owned brand auto companies and promote the benign development of the industry.