Geely Buys LTI
(8 pages of text)
Case (Pub Mat)
Chinese automobile manufacturer Geely Automotive (Geely) bought the manufacturer of the iconic London taxi cab from its bankrupt British parent company. The manufacturer’s sole product, the TX4, was a highly specialized taxi vehicle ideally suited for taxi work. It included many features for disabled passengers such as a power-operated wheelchair ramp and a wide rear passenger door. However, the vehicle cost more than twice as much as its competitors and demand was not enough for successful mass production. On the one hand, increasing awareness of disability rights in most developed nations suggested that Geely would have an opportunity to take the TX4 worldwide with an aggressive promotional campaign, and would benefit from cheap production costs in China. On the other hand, transportation network companies such as Uber and Lyft seemed to be pushing the entire taxi industry towards extinction.
- To show the difficulty of making a decision when a company is facing an uncertain future — specifically, when consumer preference and the regulatory environment must be assumed before embarking on a marketing strategy.
- To introduce the relationship between public policy and marketing strategy.
- To illustrate the complexities of international commerce when a Chinese company has to try to take an existing British product to the world market.
China, United Kingdom, Large, 2013
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