Geely Versus Ford: Threat from an Emerging Market Multinational to a Market Leader
(6 pages of text)
Case (Pub Mat)
In 2010, when China surpassed the United States to become the largest global market for automobiles, China’s Geely Automobile Holdings Ltd. (Geely) entered the global automobile industry by acquiring Volvo Group’s cars division from Ford. Seven years later, Geely bought a controlling stake of 51 per cent in Lotus Cars, a stake in the truck maker AB Volvo, and a 10 per cent share of Daimler AG worth US$9 billion, becoming its largest shareholder. On August 31, 2018, Ford’s chief executive officer faced a strategic challenge: assess the level of threat that Geely posed and how to respond to it, if necessary. Was Geely’s rise in the market endangering Ford’s market position?
This case is suitable for use in an undergraduate- or graduate-level course on global strategy, strategic management, and international marketing, as well as leadership seminars. After completion of the case, students will be able to do the following:
- Identify, understand, and assess the threat from emerging multinational corporations.
- Understand growth strategies and their implications in a global business context full of changes and uncertainty.
- Identify and understand the impact of new entrants (e.g., ride-sharing providers) and technology-based disruptors (e.g., electric and self-driving vehicles) in a century-old industry that is vital to the United States.
- Evaluate the effect of leadership decisions on business in general and corporate strategy in particular.
- Assess how changing industry dynamics and government policies affect a firm’s strategic position.
United States; China, Large, 2010-2018
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