Integrative case 2.4 competing in china’s automobile industry

Case Discussion Questions:

1. Why do all multinational automakers choose to use

FDI to enter this market? What are the drawbacks

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of using other entry modes such as exporting and

licensing?

2. Some early entrants (such as VW) succeeded and

some early entrants (such as Peugeot) failed. Similarly,

some late entrants (such as Honda) did well

and some late entrants (such as Ford) are struggling.

From a resource-based standpoint, what role does

entry timing play in determining performance?