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The Investigation of Volkswagen's Entry Strategy in China's Car Market

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MA MANAGEMENT DISSERTATION<br />

XIAOFENG WEN<br />

Positivist: it is <strong>of</strong>ten adopted <strong>in</strong> the research philosophy, which reflects the pr<strong>in</strong>ciples<br />

<strong>of</strong> positivism (Saunders, Lewis & Thornhill, 2003). <strong>The</strong> results worked out by<br />

researchers are from observable social realities and can be law like generalizations<br />

similar to the ones obta<strong>in</strong>ed by scientists (Saunders, Lewis & Thornhill, 2003). <strong>The</strong><br />

researchers focus on highly structured methodology to facilitate replicate previous<br />

data and quantifiable observations, results <strong>in</strong> statistical analysis (Saunders, Lewis &<br />

Thornhill, 2003).<br />

Interpretive: the researchers need to recognize the subjective reality <strong>of</strong> their study<br />

so as to be able to understand the motives, actions and <strong>in</strong> <strong>in</strong>tention <strong>of</strong> research<br />

participants. <strong>The</strong> philosophical base <strong>of</strong> <strong>in</strong>terpretive research is hermeneutics and<br />

phenomenology (Boland, 1985). Interpretive research does not predef<strong>in</strong>e dependent<br />

and <strong>in</strong>dependent variables, but focuses on the full complexity <strong>of</strong> human sense<br />

mak<strong>in</strong>g as the situation emerges (Kaplan and Maxwell, 1994).<br />

Critical: it requires the researchers to understand the people’s social constructed<br />

<strong>in</strong>terpretations and behaviors which would affect by their broader social force,<br />

structures or process (Saunders, Lewis & Thornhill, 2003).<br />

In order to analyze the current situation <strong>of</strong> Ch<strong>in</strong>a’ car market and VW, the<br />

philosophy beh<strong>in</strong>d this part <strong>of</strong> research will be positivist, moreover the PEST<br />

analysis (for Ch<strong>in</strong>a’ car market), Porter’s five force model and SWOT analysis (for<br />

VW) is employed to assist it. And reflects a critical stance when <strong>in</strong>terpret social<br />

reality and prospect people <strong>in</strong> the society. However, this research is <strong>in</strong>cl<strong>in</strong>ed to an<br />

<strong>in</strong>terpretive philosophy, it because the objective <strong>of</strong> this research is answer the “why”<br />

and “how” question, it cannot answer clearly by quantifiable observation and<br />

statistical.<br />

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