September 2024: Jetour launching in South Africa

Jetour, an independent brand of the Chery Group, a Chinese owned and produced vehicle manufacturer, launched in South Africa in 2024.
It’s a relatively fresh face in the global motoring scene, too, as Jetour debuted in 2018 and has already become one of China’s fastest-growing automotive faces with over 1.2 million units sold since its inception.
Jetour has a 10-year, 1million kilometre warranty and is aimed at adapting its products and brand for the South African market. It aims to offer luxury quality with a lower price to ensure it is competitive.
Jetour opened a training facility in Kyalami, Gauteng, to ensure intensive sale and after sales training to ensure consistency amongst its 40 South African dealerships in Sotuh Africa as well as its international dealerships.
Jetour is planning to advertise and sell their range of vehciles in excisting showrooms (selling other Chinese vehicle brands) as well as their own showrooms and will compete in a highly competitive market for SUVs in South Africa.
Currently, Jetour will import all vehicles and parts from China and not produce or assemble any component of the vehicles in South Africa.

Adapted from: (Bubear, 2024; Taylor, 2024; Dealerfloor, 2024)

Available at: https://www.cars.co.za/motoring-news/jetour-dashing-2024-price- specs/247208/ [Accessed 17 September 2024].
Available at: https://topauto.co.za/features/112239/2-new-chinese-suvs-coming-to-south- africa-next-month/ [Accessed 17 September 2024].
Available at: https://dealerfloor.co.za/industry-news/new-jetour-vp-on-what-to-expect-from- the-brand-in-sa [Accessed 17 September 2024].

QUESTION ONE [25]

Analyse the microenvironment of the external environment and apply this to Jetour by including clear, appropriate and real world examples to support your answer.

QUESTION TWO [25]

Analyse the four basic strategies for entering and competing in a global environment and suggest which is being used by Jetour (based on the information provided). Motivate your answer.
QUESTION THREE [20]

Evaluate the advantages and disadvantages of globalisation for South Africa and explain how it Jetour contributes to this (the advantages and disadvantages). Your answer should be supported with examples specific to Jetour and South Africa.

Answers to Above Questions by Experts on Jetour Case

Answer 1:

An organisation is faced with two types of environment which includes micro environment and macro environment. The micro environment is closer to the company and directly impacts its performance while the macro environment is the broader factor that indirectly affects the performance of the organisation. The analysis of the micro environment can be performed by evaluating the factors that have a direct impact on the ability of the company to serve customers. This includes an analysis on competitors, suppliers, customers, intermediaries and the company itself which includes its employees as well.

In the given case scenario of Jetour, it is evaluated that the main focus of the company Jetour is on providing luxury SUVs at lower prices to its customers in the South African market. This implies that the focus of the company is on meeting the customers’ demand for affordability and at the same time it is also quality conscious as well. The competitive analysis indicates that the market faced by Jetour in South Africa is highly competitive because of the availability of a large number of car providers offering SUVs including Toyota, Ford and Hyundai.
The next section includes an analysis of the suppliers, intermediaries and the company’s own internal environment. To access answers to these sections, subscribe to our services.

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