Analysis Of The Motivation And Performance Of Chinese Automobile Enterprises In Forming Multinational Strategic Allicances

Since China joined the WTO in 2001,more and more domestic enterprises have gone abroad to participate in international competition.Faced with the increasingly competitive market environment in the automotive industry,more and more automobile companies have chosen the internationalization strategy of forming multinational strategic alliances with foreign companies as a development path to enhance their strength.As one of top five automobile groups in China,BAIC Group was the first domestic automobile enterprise to establish a joint venture with a foreign company,opening the way for foreign cooperation in China’s automobile industry.The strategic cooperation between BAIC Group and Mercedes Benz Group has lasted for twenty years,and the transnational strategic alliance is a classic case of strategic alliance in China’s automobile industry,which has certain significance for other automobile enterprises in China.Therefore,this paper takes the transnational strategic alliance between BAIC and Mercedes-Benz Group as the research object,analyzes the process and motivation of the strategic alliance between the two parties,and explores what kind of performance impact the transnational strategic alliance has brought to BAIC and what enlightenment it can provide to other automotive enterprises.This paper firstly reviews relevant theories and existing views on strategic alliance,and then introduces the transnational strategic alliance between BAIC Group and Mercedes-Benz on this basis.It also reviews the development process and characteristics of the establishment of transnational strategic alliance between the two parties,and then analyzes their respective motivations.It is found that the motivation for BAIC Group to participate in the strategic alliance is to obtain technical resources and improve core competitiveness,help the enterprise go public and achieve its strategic goals,increase market share and develop overseas markets.The motivation of Mercedes-Benz is to open the Chinese market and obtain the advantage of BAIC in new energy.The analysis then focuses on the impact of this multinational strategic alliance on B AIC’s performance:in terms of short-term performance,the event study method is used to analyze the acquisition of part of the Mercedes-Benz Group by BAIC Group in 2021,and it is found that this strategic alliance brings positive market performance to BAIC,and investors respond positively.In terms of long-term performance,the longterm financial performance is evaluated using financial indicator analysis,and other performance is also analyzed from the perspective of market performance and R&D and innovation capabilities,while the problems that emerged in BAIC’s multinational strategic alliances is summarized based on the above analysis.After the analysis,it is found that the multinational strategic alliance with Mercedes-Benz has contributed to the business condition and development of BAIC Group,but the performance of BAIC Group does not rise continuously with the increase of the number of strategic cooperation.Finally,through the analysis of this case to bring enlightenment to other Chinese automobile enterprises to participate in transnational strategic alliance:first,to choose a suitable alliance partner,the partners have common interest-driven and complementary advantages to achieve a win-win situation.Second,Chinese enterprises should improve the follow-up learning mechanism in order to improve their core competitiveness.Third,enterprises should consider strategic goals and actual development before the alliance to avoid blindly expanding cooperation.