Globalization and localization: a giant

　　Citing an unclosed source of SOHU He Lun’s blog, Geely’s purchase of Volvo, is just like a Chinese ugly duckling marring a Snow White from Northern Europe, who they also have to deal with the trivial in daily life after passion. How to exceeded culture background, value orientation, life style as well as language obstacles, and melt into each other, is the key for a happy marriage.

　　within the automobile industry, it is said that Geely is facing various challenges after the purchase. Undoubtedly, how to handle the relation between globalization and localization, and to realize effective resource allocation and complementary advantages, is the most basic challenge.

　　Localizing a foreigner in China is our strong point. The Chinese nation has the excellent assimilating ability for things from outside; but if Geely completely assimilates Volvo, Volvo will lose its own individuality and value.

　　Among the international automobile brands entered China in the earlier stage, Citroen is almost completely localized and its brand image is extremely bad while Volkswagen obstinately insists on its own standards of car-making such as Even a screw needs to get attestation in Germany.

　　Be strict to auto-parts localization . At the same time, depending on Chinese partner in the market, Volkswagen carries out local adaptability improvement for products, and becomes one of the most successful international car brands. Success or failure lies in a delicate balance among brand individuality, value and localization. In the past, combining characteristics of both its own and Chinese auto market, sales of Volvo is good; even its brand image overtops other markets. After Geely becomes the owner, can it perform properly?

　　The same problem is also involved with Volvo’s birthplace－Sweden. For the Swedish Volvo factory, Geely can neither be a Mr.Irresponsible nor a charitarian nor a vampire., though wealthy, Geely is a foreigner in Sweden , unlike Toyota who can rely on Toyota mode of production and is dominant in the management in JVs with GM or PSA- Citroen. In Sweden, to a large extent, Geely should do as the Romans do. Geely should put Sweden talented persons into important places and melt into the local society, which in fact is globalizing for itself. That is never a strong point for Chinese.

　　Buying and managing Volvo is a global issue. However, in the past, Geely uses "nation brand " ; Li Shufu and his team show intense nationalism inclination, which is exactly the enemy of globalization and localization. It is easy to assume that if Li and his team handle day-to-day affairs with nationalism inclination , show nationalism inclination everywhere and highlight national benefits instead of bilateral benefits,it will certainly cause the other party's rebound. There are a few example of our joint ventures, they lose their advantages during endless struggles, even Volvo is already a sub company of Geely.

　　More than 20years ago, international automobile companies came to China and have gotten through various kinds of challenges . There are winners as well as losers. Nowadays, Geely, different from those multinational corporations, has neither technological superiority nor globalization experience. Geely will be confronted with more tough tests. To overcome these challenges, first and foremost, it is obliged to have the idea of globalization and localization. Perhaps Li Shufu is never lack of the concept of globalization and localization in his inner heart, and use of "nation brand" is only one kind of means. However all team members of Li can consider and handle problems like ?

　　We wish Volvo and Geely a good marriage, and also hope that both sides are able to face the upcoming tough challenges.

　　(Translator: yalong/ Jessie)

　　See original Chinese report Please click:http://helun.blog.sohu.com/147472098.html