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International Marketing Strategy (Entry Mode) for Chinese Household Electric Appliance Enterprises into the UK Market - Dissertation Example

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International Marketing Strategy: The Successful Entry of Chinese Household Electric Appliance Enterprises into the UK Market Acknowledgements Table of Contents Summary 4 Chapter 1: Introduction 6 Statement of the Problem 7 Purpose of the Study 8 Summary 8 Chapter 2: Review of the Literature 9 Export Entry Mode 9 Licensing Entry Mode 12 Investment Entry Mode 17 Summary 18 Chapter 3: Methodlogy 19 Research Method and Design Appropriateness 20 Research Questions 21 Population 22 Sampling Frame 23 Informed Consent 25 Confidentiality 26 Geographic Location 27 Data Collection 27 Data Collection Procedures 28 Instrumentation 29 Validity and Reliability 30 Internal validity…
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International Marketing Strategy (Entry Mode) for Chinese Household Electric Appliance Enterprises into the UK Market
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International Marketing Strategy (Entry Mode) for Chinese Household Electric Appliance Enterprises into the UK Market

Add into the mix a market on another continent, in a different language group, various political system, and a changing business culture and the process of successfully navigating the waters can be difficult indeed. In order for international companies to stay successful in today’s quickly changing and increasingly global business community, it is important to constantly be innovating and looking for viable expansion opportunities when they present themselves. The People’s Republic of China has countless small and medium sized companies that are well situated to move into global markets. Many of the industries are firmly rooted in the manufacture and sale of household appliances. A growing market for such appliances has been realized in the region of the United Kingdom. Expansion into the United Kingdom does not come without perceived risks. This study first looks at the market conditions that need to be evident before a Chinese firm can realistically explore moving into the United Kingdom. The project also examines the unique nature of business in the UK and how those differences need to be accommodated by the Chinese company looking to expand. In the end, the study looks at the three main entry modes into a new international market, highlight the positive and negative aspects of each, in an effort to determine which might be best suited to the small and medium sized Chinese appliance company. The theory of cultural distance is also explored to determine how Chinese companies can best minimize the great divide that currently exists between the two companies. Since we know that cultural distance increases risk, an analysis is needed to determine just how much risk a given firm is willing to accept. In addition, various options for entry need to first be explored in order to narrow the cultural distance currently in existence. In the end, a primary objective of this project was to conduct actual field research by contacting various Chinese firms either interested in the UK market or they are already conducting business there. Advice and insight was solicited about how small and medium sized Chinese appliance companies should best explore future expansion into the United Kingdom. What follows is a synopsis of these findings. 1. Introduction International business, by its very nature, is a complex and difficult landscape to navigate. Various legalities exist that certainly provide a barrier to entry into many markets. While it is certainly feasible, many companies struggle to justify the time, expense, and expertise to successfully enter into a new market and to be financially prudent at the same time. China is obviously an international manufacturing powerhouse, making nearly every type of conceivable product available on the market today. Domestic consumption alone, however, can only carry an economy the size of China so far. It is prudent to explore international markets and to make a successful entry into various product categories and often and seamlessly as possible. China has long been known for its household ... Read More
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