Research On Development Strategy Of Geely Company

In recent twenty years,as the economic globalization is going deeper and deeper,the auto industry has become a more and more important role in China’s GDP,and the Chinese auto industry has gone over milestones one after another.After decades of long development,Chinese automobiles have finally ushered in their golden explosion period.According to the statistics,the production,sales and export volume of Chinese auto have increased steadily,and they have continued to lead the world for many years.Chinese auto industry now is playing an irreplaceable role and status in the global automobile market.However,compared with other mature auto industries in the world,there are still many problems in the auto industry that need to be paid attention to.For example,although the output of automobiles is large,the brand influence is not good,and though the government are advocating the environmental friendly models all the time,but the core technology is not mature,and all these problems will affect he positive development of the automotive industry in the future.With the outbreak and spread of the COVID-19 in year 2020,the world economy is turbulent,and leading to a severely impact on the international and domestic automobile markets.The industry has experienced a "cold winter",which has affected the output and sales of the global auto industry,and the economic benefits of many key enterprises have declined.Besides,the local car brand results in weak progress.At the same time,with the rapid development of technologies such as 5G,Internet of Things,and human-computer interaction,a new round of industrial reform has been launched,making automobiles gradually break away from the category of mechanical products and begin to move towards the direction of electrification,networking,intelligence,and sharing.The big changes in the automotive industry have brought challenges to all the companies.Geely Automobile Company has been developing in the field of cars for more than20 years.It is committed to independent innovation and responds in a timely manner according to the market environment,which has enabled it to develop rapidly among domestic auto companies.Geely Automobile Company has won many awards during the past decades and now it is in a leading position in the Chine auto industry.However,since 2018,Geely Automobile’s annual total sales and operating income have shown a downward trend,and the annual net profit growth ratio has also dropped from a peak of 125.9% in 2016 to a bottom of-32.5%.At the same time,the sales volume of new energy vehicles is much lower than the planned value,and does not occupy a brilliant market share.Today,the global COVID-19 epidemic is still serious,and the reform of the automobile industry is inevitable.How to determine the development strategy in this environment,seize market opportunities,give full play to its own advantages,and seek a way out of competition has become a problem that Geely Auto has to face.In this paper,Geely Automobile Company is selected as the research object.Combining with the actual situation of the company,using the theory and tools of strategic management to conduct in-depth research,analyzing its internal and external environment,and choosing the SO strategy that is more suitable for the future development of Geely Automobile Company.Therefore,the conclusion will be improve technology Ability and brand awareness,seize opportunities to occupy overseas markets,and respond to peer competition with high-performance brands.Afterwards,according to the selected strategy,an implementation plan to strengthen key technology research and development,increase investment and cooperation,and continue to innovate marketing models have been formulated,as well as the guarantee measures of strengthening the construction of talent teams,corporate culture,and capital management and operations.The author hopes the conclusion of this article can support some important theories related to corporate strategic management with practical cases,and hopes to provide some thinking and reference for the future development of other automobile companies at the time of rapid development of stateowned automobiles.