The Automobile Manufacturing Industry in China Essay - 2

The Automobile Manufacturing Industry in China - Essay Example As the Chinese continue to invest significant capital in research and development as well as the acquisition of existing foreign-owned automobile manufacturing companies, it is clear that China has the potential to rival Japan as a global industry leader. The results of a survey administered to 100 randomly selected individuals from Beijing, China confirmed the hypothesis that China’s automobile manufacturing sector is positioned for considerable growth. Millions of Chinese with the financial means will be purchasing automobiles in the years to come. The Chinese government continues to invest in highway infrastructure in support of the anticipated growth in the number of automobiles. A large number of competitors in the Chinese automobile industry is welcomed news for consumers. The product variety and vehicle quality are both excellent and the fierce competition for customers will moderate prices well into the future. Primary research was conducted utilizing a self-administered questionnaire. The respondents were 100 randomly selected local residents of Beijing, China. This method was selected for several reasons. First, a self-administered questionnaire allows the researcher to collect significant amounts of data in a relatively short period of time. Second, the data are easily coded and analyzed. Third, this method is accepted for its high level of accuracy in drawing conclusions related to the research hypothesis. In addition to primary research, secondary sources were utilized to support the findings in this study. Chapter three provides a comprehensive overview of the research methodology. In applying Porter’s Five Forces and Diamond models to the Chinese automobile manufacturing industry, the analysis is quite revealing. Utilizing the five forces approach, it is clear that Chinese automobile manufacturing firms do not enjoy a strong competitive advantage because there are so many companies in the market.