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Pages 40 (10040 words)
This dissertation examines the conditions and requirements for internationalisation in a fast-growing but hard-to-crack market - the challenges and the appropriate entry modes and strategies for a successful market penetration. We choose China for this purpose because of its unique position as a long-managed economy just opening up its marketplace to the world…
The office electronics industry may be considered part of this success story since the technology involved in this field, like most technology-based enterprises, was for the most part brought to China by foreign firms. In discussing the internationalisation process in China involving the office electronics industry, we have zeroed in on three global players - Fuji Xerox, Canon and Ricoh - for being among the foreign firms to locate and nurture the growth of this particular industry in China, once the citadel of socialism.
The internationalisation challenges, also referred to as "liabilities of foreignness" in the literature on the subject, include local market disadvantages, disproportionate operating costs, the denial of benefits afforded to domestic firms, cultural distance, political bargaining and positioning, institutional differences and corruption, local density and subsidiary performance, organisational capabilities, administrative heritage and organizational structure.
In analysing these internationalisation challenges in relation to the three case-study organisations, the dissertation suggests that they could be divided into two categories, as first and second-order challenges. ...
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