Wednesday, May 6, 2020

Strategies for Competing China-Free-Samples-Myassignmenthelp.com

Question: Discuss about the Strategies for Competing in a Changed China. Answer: Analysis of the case study The strategies undertaken in 2004 were appropriate as per the time, the multinational enterprises has to beat the competition in the Chinese market, where the big companies like Motorola already decided to increase their investment. In international business to survive the local players is a big challenge (Williamson Zeng, 2004). Discussing about the first strategy in which the many multinational companies entered the high end market, entering a high end market means not targeting the market that have the maximum number of customers, penetrating into the market targeting the middle class would have been the most appropriate strategy (Armstrong et al., 2015). The strategy of reducing the cost can be said was one of the most effective strategies, once the cost is being reduced then the price of the products will also be decreased thus making the product or service attractive to price sensitive customers (Cavusgil et al., 2014). Recommendations In 2001, the companies missed one of the most important strategies to enter the foreign market. In order to enter a foreign market in partnership with the local players would have been one of the most effective strategies. Collaborating with another company would have reduced the capital for entering the foreign as well as risk of failure of expansion strategy. Joint ventures are one of the most commonly used strategies for entering a foreign market. Buying a Chinese company could have been another effective strategy that would have helped the companies to have a good market share from the very beginning (Jagersma van Gorp, 2003). Apart from the strategies the multinationals could have increased their investment in the research and development department. Before entering an international market it the very important to do industry analysis and competitor analysis, this would have helped the multinationals to know the weaknesses of their competitors and what are the preferences of the customers they are targeting, this could have helped the multinational easily create a competitive advantage over the local players (Wild, Wild Han, 2014). References Armstrong, G., Kotler, P., Harker, M., Brennan, R. (2015).Marketing: an introduction. Pearson Education. Jagersma, P.K D.M. van Gorp, (2003). Still Searching for the Pot of Gold: Doing Business in Todays China, Journal of Business Strategy 24, no. 5 27-35. Cavusgil, S. T., Knight, G., Riesenberger, J. R., Rammal, H. G., Rose, E. L. (2014).International business. Pearson Australia. Wild, J. J., Wild, K. L., Han, J. C. (2014).International business. Pearson Education Limited. Williamson, P., Zeng, M. (2004). Strategies for competing in a changed China.MIT Sloan Management Review,45(4), 85.

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