Geely Pestle & Swot Analysis Case Study
Key Learning Outcomes
By the end of the case, students should be able to:
- Understand the broad macro-environment of Geely and the Chinese automobile industry in terms of political, economic, social, technological, environmental and legal factors (PESTEL/PEST/STEEPLE).
- Use our swot analysis example to gain an overall understanding of Geely's strengths and weaknesses and strategic options arising from the opportunities and threats that have been identified from the Pestle analysis example on it's business environment.
- To apply strategy business models and frameworks such as Pestle/Pest/Steeple, Swot etc to real company cases.
1.0 INTRODUCTION
Geely, previously known as Zhejiang Geely Holdings Group is a multinational Chinese automobile manufacturing company founded in 1997 with its headquarters in Hangzhou, China (Bloomberg 2017). Geely is listed among the top ten auto manufacturers in China as well as among the top 500 Chinese firms (Bloomberg 2018; Geely.com). It is the first Chinese automobile manufacturer to develop its own range of engines including eight series of engines between 1 liter to 1.8 liters (Geely.com).The company’s revenues for the year ending 2017 were approximately 92.8bn RMB ($14.76bn), a 73% rise from the previous year while profits also rose to 10.6bn RMB, a 108% rise from 5.1billion RMB in 2016 (Jourdan 2018; Statista 2018).
Using the Pestel and Swot frameworks, the following section looks at the current macro environment in both China and globally to assess the trends driving Geely’s markets and in the process reveal opportunities that Geely can capitalize on as well as threats on the horizon. Using a swot analysis, the report further assesses Geely’s current strengths that can be the building block for its global ambitions before concluding with recommendations.