XPeng, is a Chinese electric vehicle manufacturer headquartered in Guangzhou, Gu

XPeng, is a Chinese electric vehicle manufacturer headquartered in Guangzhou, Guangdong. With
growing success in existing markets, XPeng is keen on further international expansion. Assume that the
firm needs to choose ‘one’ country from three target countries, i.e., France, Argentina, and India to
invest. Only one of these countries that has the highest potential for success is to be chosen. Assume
that you are employed by a consulting firm that has been approached by XPeng seeking advice for
making the above decision. Now, you are required to conduct a research-based strategic analysis
addressing the following tasks.
1) Applying the CAGE framework, identify similarities/differences between the home country and
each of the potential host countries that XPeng must consider when developing cross-border
strategies. Based on the CAGE analysis, you also need to recommend a country for the firm to
invest in. (35 marks, 1050 words maximum)
2) Using Porter’s National Diamond (PND) framework, evaluate the competitiveness of the chosen
country focusing on the chosen industry, and summarise the strategic implications of the
findings from the PND analysis for XPeng. (25 marks, 750 words maximum)
3) Based on the findings of the above analyses, identify what should be the relatively most
important strategy out of the AAA (Arbitrage, Adaptation or Aggregation) strategies to focus on
for XPeng to create value in the chosen host country to start with, and justify your
recommendation. Reflect on how this strategy may shift over time as the firm continues to
operate in the chosen country. (25 marks, 750 words maximum)
4) Drawing on the above analyses and supported with other relevant sources, briefly discuss
THREE possible cross-cultural challenges in operating in the chosen country that should be
considered by XPeng. (15 marks, 450 words maximum)