Fuzzy VRIO and SWOT Analysis of Chery Automobile
Faen Chen* and Yukio Kodono**
*Graduate School of Management and Information Science, Osaka International University, 3-50-1 Sugi, Hirakata, Osaka 573-0192, Japan
**Faculty of Business Administration, Osaka International University, 3-50-1 Sugi, Hirakata, Osaka 573-0192, Japan
The Chinese market is indispensable for international automobile enterprises and they are expanding their investment in this market accordingly. To escalate their market share in China, automobile manufacturers and independent automotive enterprises have implemented a series of management strategies. Consequently, competition in China is becoming increasingly intense. Conversely, Chinese automobile enterprises have no international brand recognition. In this paper, an independent automobile enterprise, Chery Automobile Co. Ltd., is selected as a case study and examined using the SWOT (Strengths, Weaknesses, Opportunities and Threats) method. Moreover, we analyzed the strengths and weaknesses of the company’s internal environment using a fuzzy VRIO (Value, Rarity, Immutability and Organization) method. Applying the fuzzy theory to an analysis of the management environment can facilitate more effective strategy formulations. It is expected that the application of fuzzy theory to management methods will contribute to the future development of the Chinese automobile industry. The competitive advantages to Chery are illustrated by the fuzzy VRIO analysis.
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