首页|Innovation Strategy for Sustained Competitive Advantage: A Case of Geely Automobile Holding Ltd.
Innovation Strategy for Sustained Competitive Advantage: A Case of Geely Automobile Holding Ltd.
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NETL
For the past two decades，the global automobile industry is experiencing a great market shift from advanced towards less developed economies of Latin America and Asia，especially China。Due to its 1。3 billion potential customers，Chinese automobile industry is soon expected to become the world's largest，for which the global auto giants are trying their best to capitalize this huge opportunity and have continued to hold the major portion of the market。To the question of how Chinese domestic automobile manufacturers are using innovation as a tool for competing against the global auto giants，the case of Geely Automobile Holding Ltd has been studied。Data analysis revealed that Geely's current strategy aims at using technological innovation to produce cheaper products than those being offered by its competitors。Other than that，it was found that only R&D and Legal departments are involved in the innovation process，and，only specific personnel are provided training for innovation。Currently Geely only focuses upon two types of customers，i。e。those having low income and the others having high income。And，Geely uses open innovation as one of its strategies by cooperation with auto companies from advanced countries，but，it does not have strong cooperation with companies from emerging or less developed countries。But Geely's current innovation strategy might not be fruitful in the long run because; (a) Other domestic auto companies like Cherry and Nanjing automobile，also have the same strategies，and，(b) Rising costs of factors of production will soon become a hindrance in producing cheap products。Keeping in view the needs of the global auto industry，specifically Chinese automobile industry，and in order to strengthen its base for sustained competitive advantage a conceptual framework of innovation strategy has been proposed for Geely automobile。
NETL
