Achieving the Low Cost Strategy Through the Innovation in the Product Architecture and Inter-Firm Relationship - A Study of Chinese Cars Made By Geely and its Suppliers

32 Pages Posted: 20 Jul 2007

Date Written: July 2007

Abstract

The purpose of this paper is to put forward the hypothesis that a transformation from closed integral architecture to quasi-open modular architecture contributes to the achievement of a low-cost competitive strategy by Chinese carmakers. Since 2006 China has become the 3rd largest player in the automobile industry in terms of production. Emerging Chinese carmakers have developed an innovative approach to product architecture so as to compete effectively with their foreign counterparts. This paper has both theoretical and empirical objectives.

Keywords: Innovation, product architecture, inter-firm relationships, Geely, the Chinese car, the automobile industry

JEL Classification: 032, 033, L22, L62

Suggested Citation

Hua, Wang, Achieving the Low Cost Strategy Through the Innovation in the Product Architecture and Inter-Firm Relationship - A Study of Chinese Cars Made By Geely and its Suppliers (July 2007). Euromed Marseille Working Paper No. 15-2007, Available at SSRN: https://ssrn.com/abstract=1001679 or http://dx.doi.org/10.2139/ssrn.1001679

Wang Hua (Contact Author)

Euromed Management ( email )

Domaine de Luminy
BP 921 13288 Marseille Cedex 9, 13288
France

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