| Case Title |
Shanghai Automotive Industrial Corporation's Strategies for Global Expansion |
| Case Author(s) |
Shirisha Regani Sanjib Dutta
|
| University |
ICFAI Center for Management Research, India |
| Abstract |
This case discusses the expansion plans of the Shanghai Automotive Industrial Corporation (SAIC), the largest auto company in China. SAIC was created in 1990, by merging all the auto companies in the Shanghai region, to form a single state-owned corporation. It was a diversified organization with interests in various auto related industries, such as car loans, insurance, retailing, etc. However, it was best known for its joint ventures with Volkswagen and General Motors, which manufactured the top selling passenger cars in China. SAIC has not so far manufactured a car under its own brand name.
In the early 2000s, SAIC began making moves towards becoming a global company. Its strategy involved consolidating its position within China, exploring foreign production and markets and developing a car brand of its own. The case discusses the steps taken by SAIC to become a global auto company and achieve its ambition to become one of the top 6 auto companies in the world by 2020. The case looks into the company's joint ventures in China, its acquisitions and deals with foreign companies and efforts to manufacture its own brand of cars. It concludes with a discussion of the company's future plans and the challenges it faces in achieving its ambitions. |
| Available In |
ECCH Case Collection |
| Publisher |
ICFAI Center for Management Research (ICMR) |
| Publisher Case No. |
305-445-1 |
| Distributor(s) |
European Case Clearing House
|
| Pub/Rev Date |
2005 |
| ISBN |
|
| Case Length |
15 pgs |
| Teaching Note |
Yes |
| Pub TN Ref No. |
305-445-8 |
| Pages (TN) |
5 pgs |
| Issues |
Expansion of a major state-owned Chinese auto company; role and importance of foreign joint ventures in developing countries; strategic acquisitions in international expansion; and importance of cultural factors in negotiating international business deals. |
| Organisation(s) |
Shanghai Automotive Industrial Corporation
|
| Countries |
China |
| Industry |
Automobile & Automotive |
| Period Covered |
1984 - 2005 |
| Level |
Postgraduate |
| Links of Interest |
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