Hi,
after developing the framework for US market entry of a Chinese automotive OEM, the question was if the OEM should consider to build a plant in the US or not? What are the key areas to consider?
Hi,
after developing the framework for US market entry of a Chinese automotive OEM, the question was if the OEM should consider to build a plant in the US or not? What are the key areas to consider?
Hi there,
Is this a framework question or a case question?
There are a few ways to look at this, and each one depends on the context of the case/question (I have a number of clarifying questions I'd have to ask to determine which of the below work):
(editiert)
1) market attractiveness of auto OEM in the USA
- average profit margins
- growth rates
- market size
- regulation
- new technologies
2) competitive landscape in the USA
- concentrated or fragmented market?
- respective market share of competitors
- any differentiation or competitive advantage
3) capabilities of the chinese auto OEM
- human capital: expertise, skills, talent
- physical capital: facilities, machinery, operational processes implemented
- financial capital: financing required to enter this market and to build the plant
4) financial considerations
- expected costs
- expected revenues
- expected profits
- breakeven / payback period
- expected ROI
to structure the framework even more you can even divide it into
EXTERNAL and include: market attractiveness and competitive landscape
INTERNAL and include: capabilities and financial considerations
(editiert)
Hello!
In these cases, why don´t you give it a shot and then post here to get the community´s feedback? I assure you, you will learn so much more in doing that and it will get you ready for the real interview
Cheers,
Clara
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