Market Entry In China

This book compiles brand new case studies on the intricacies and market entry strategies of different companies in China. The sheer speed and scope of China’s growth makes it unique and investment opportunities are very attractive. Despite the potential, many western companies fail in their market entry strategies. This book traces the major sources of failure and uses cases to illustrate how firms can better cope with the challenging Chinese market. With a special focus on marketing, positioning, and branding, this book presents issues and solutions of both large multinationals and small niche market players.

Seminar paper from the year 2012 in the subject Business economics - Offline Marketing and Online Marketing, grade: 1,0, Zhejiang University Of Science and Technology, language: English, abstract: During the last years the globalisation has increased the competition amongst the companies and made them more willing to enter foreign markets. Developing a market entry strategy is very complex and has long-term consequences for a company. Thus, choosing an adequate market entry strategy has an enormous importance. The present term paper is concerned with international market entry strategies especially for the Chinese market on the example of Volkswagen. In chapter two some theoretical basics of international market entry strategies are provided. In this sense, the term of international market entry strategy is defined and the motives for companies to enter foreign markets are analyzed. In chapter three the development of a market entry strategy for the Chinese market is examined. Therefore, the significance of the Chinese market will be shown at the beginning. Afterwards, the timing and the location of market entry will be explained. Finally, three forms of market entry will be presented. The fourth chapter creates a practical connection of the topic by explaining the market entry strategy of Volkswagen.

Seminar paper from the year 2015 in the subject Business economics - Trade and Distribution, grade: 1,0, Edinburgh Napier University, language: English, abstract: While, in the United Kingdom the grocery market is saturated and growth is only achievable by gaining market share of a competitor, the People’s Republic of China (PRC) has significant growth opportunities due to a large population and an increasing middle class with a growing disposable income. However, time pressure is high, as many companies seeking to exploit the high growth rates, accordingly investments will become more expensive. Although, China has strong growth potential, it is still a relatively poor and state-controlled country with a multitude of regulations and risks. Hence, this report will assess risks and opportunities associated with a market entry in order to facilitate Sainsbury’s decision whether or not to expand its retail business to the Chinese market, as well as provide recommendations concerning an appropriate market entry strategy.

Bachelor Thesis from the year 2006 in the subject Business economics - Business Management, Corporate Governance, grade: 1,6, University of Applied Sciences Essen, 119 entries in the bibliography, language: English, abstract: The introduction of this paper as well as the summary and the scope of work are drawn in the first chapter. Chapter 2 deals with the definition and relevance of the problem and outlines the research methods that are applied in this work. The third chapter is composed of the theoretical background for the subsequent case. For this reason chapter 3.1 gives an overview of the relevant market entry strategies. Afterwards an analysis of the selected market entry strategy that is relevant for the case - the joint venture - is given in chapter 3.2. This analysis is subdivided in three areas: a definition (3.2.1), the explanation of different variations of this market strategy (3.2.2.) and finally a critical comment in chapter 3.2.3 which includes a comparison of its advantages and disadvantages. In chapter 3.3 relevant theories for market entry barriers will be introduced. Porters Industry analysis will be described in chapter 3.3.1. Afterwards, the SWOTanalysis, its origin and elements will be explained generally in chapter 3.3.2 and Hofstedes cultural value dimensions will be outlined in chapter 3.3.3. Out of these theories the selected elements for the case part will be illustrated in chapter 3.4. First, the SWOT analysis will be explained in detail in chapter 3.4.1. For this reason the selected market entry barrier elements will be outlined. Again this chapter is sectioned into three parts: a detailed definition of the SWOT elements weaknesses (3.4.1.1) and threats (3.4.1.2) is given, its use is clarified afterwards (3.4.1.3) and a critical comment is drawn finally (3.4.1.4). The elements of Hofstedes cultural value dimension are analysed the same way as the theoretical elements of the market entry strategy and elements of the SWOT analysis. First, all selected dimensions will be defined. Chapter 3.4.2.1 is concerned with Power Distance, followed by the dimensions of Uncertainty avoidance (3.4.2.2) and Individualism versus Collectivism (3.4.2.3.). This definition will be closed with the last dimension: Long-Term orientation in chapter 3.4.2.4. In the following there will given be a critical comment on Hofstedes theory in chapter 3.4.2.5. After the theoretical background is outlined in chapter 3, chapter 4 is concentrated on the case part and the application of the discussed theories and methodologies into a practical environment. [...]

Diploma Thesis from the year 2004 in the subject Business economics - Trade and Distribution, grade: 1,7, Stralsund University of Applied Sciences, language: English, abstract: [...] Those milestones will be outlined in the following chapters. Concerning the structure of this thesis, it will start off by giving a general description of the Chinese market and its economic development, as well as trade and investment opportunities and motives. After that, an overview of the Chinese culture will be given, including a description of Chinese behavioural patterns and the difference to German behaviour. Furthermore negotiation style and techniques will be pointed out. Based on all the information given, potential entry strategies will then be pointed out, including each strategy’s advantages and disadvantages. Besides, industrial and foreign direct investment opportunities policies regulated by the Chinese government will be illustrated and major investment opportunities will be outlined. This chapter is followed by a description of the choice of location, which also includes an overview about certain investment incentives which are offered in specific regions. The following chapter deals with a complete risk analysis for the Chinese market. The second but last chapter deals with companies, which have managed to enter the Chinese market. This chapter also includes a description of the reasons why these companies have been so successful in accessing the Chinese market. Finally, the most important information will be summarized and a final conclusion will be drawn. Figures and tables are part of the appendix.

Seminar paper from the year 2015 in the subject Business economics - Trade and Distribution, grade: 1,0, Edinburgh Napier University, language: English, abstract: While, in the United Kingdom the grocery market is saturated and growth is only achievable by gaining market share of a competitor, the People's Republic of China (PRC) has significant growth opportunities due to a large population and an increasing middle class with a growing disposable income. However, time pressure is high, as many companies seeking to exploit the high growth rates, accordingly investments will become more expensive. Although, China has strong growth potential, it is still a relatively poor and state-controlled country with a multitude of regulations and risks. Hence, this report will assess risks and opportunities associated with a market entry in order to facilitate Sainsbury's decision whether or not to expand its retail business to the Chinese market, as well as provide recommendations concerning an appropriate market entry strategy.

Essay from the year 2003 in the subject Business economics - Trade and Distribution, grade: 1,7 (A-), University of Glamorgan, course: International Business and Export Management, language: English, abstract: The People’s Republic of China (PRC) is the last Communist State in the world (Roberts and Kynge, 2003). Mao Zedong, the leader from 1949 until 1976, pursued a radical politicsorientated and self-sustained policy, which “had China’s door closed in front of the foreign countries” (Yahoo! Inc., 2003). Deng Xiaoping succeeded Mao Zedong and launched his economic reform programme, called the “Open Door” policy, in 1978, which encouraged foreign investment (Yahoo! Inc., 2003). This was the beginning of a new era for China. A great deal of international investors tried to gain a foothold in China’s fast growing markets in the form of joint ventures or direct investment. This paper is devoted to the joint venture (JV), and investigates whether or not this form of enterprise is the ideal strategy to enter the Chinese market. After a short survey of the Chinese economy, JV’s will be defined. The explanation of JV’s is made under consideration of the distinctive features of the Chinese culture. A lot of enterprises and JV’s as well failed because it is not easy to deal with the Chinese. This essay reports about failures of a Western JV and tries to examine the causes. Examples of successful JV’s are described as well before concluding whether or not “Joint ventures are the ideal entry strategy to use when entering the Chinese market for the first time; it is a win-win situation”.

China is the world’s largest power region, achieving economic growth rates that exceed those of most industrialized countries. In this book practitioners of international companies are offered valuable insights and lessons from established and successful managers, academics and consultants. The book is divided into three parts: "Opportunities and Challenges in China", "Strategies for Market Entry and Business Success" and "Practical Insights from China". It covers a variety of topics such as business strategies, branding, pricing, market research, legal constraints and successful business relations.