Assignment Task:
Porter's Model-GAC and U.S. Auto IndustryGAC, one of the largest Chinese auto manufacturers, has planned for years to enter the US market. However, there are several strategic -challenges along with trade conflicts, China's response to pandemic, etc. Should they and if so, how?
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A Chinese automobile company, GAC Motors wants to sell autos in the US. Use Porter's Industry model to explain why/why not GAC should enter the US? Should Toyota/GM be concerned about this entry to U.S auto industry? One issue to be aware of is the US-China Trade War. Is it still occurring and therefore potentially impacting GAC's entry? The other key external issue is does/did the global pandemic crisis impact their decision to enter?
The best way to approach this DQ, is to first conduct an US auto industry analysis using Porter's five-factors in your discussion. (This model is explained in Chapter 4) Next, discuss whether the trade war and/or pandemic will impact your assessment? (i.e. options: delay entry, alliances, or strengthen stance to not enter or no impact at all) Next discuss are there other external factors that you may want to consider as you make your assessment? When making your assessment will GAC attempt to enter Mexico, does this help, harm or provide no benefit in their effort to enter the U.S.? (Hint: Remember to use information in Resources and conduct your own research to stay current. External factors keep changing and your response should reflect the more current info.)