PESTLE and SWOT analysis of Geely 2017

By: Prudence K Magezi

In February 2018, Li Shufu the CEO of Geely announced news that his company had increased its stake in Mercedes-Benz owner, Daimler to 9.69 percent, a strategic move aimed at giving Geely access to Daimler’s leading electro-mobility technology which included electric batteries. As part of a global ambition to become a dominant auto force all over the world, Geely already owns British supercar brand Lotus, Swedish car maker Volvo and has a 50 percent stake in Malaysian automaker Proton. In other words, Geely is making all the right moves yet the Chinese automaker has barely a presence in major markets such as the US. Can Geely become a dominant auto force that can threaten the Japanese and American auto giants in the short-run and how? Using strategic frameworks including Pestel and Swot, this report 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.

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