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
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…
A business unit dealing with fast food products should research into the demography, the habits of people into dining out and the suitable location to open an outlet. One of the tools used widely for the macro environmental study is PEST.
The study operates mainly based on research question which can be stated as follows: what are the effects of the following firm-specific factors (firm size; international business experience and organizational culture) and host country factors (cultural distance; country risk and market attractiveness) on the choice of entry mode of a UK firm into a foreign market?
As the report declares the Chinese economy is expected to be the world’s largest by 2025 in terms of purchasing power parity. China now has global economical and political power and the Chinese MNCs are drivers of international business. MNCs from emerging economies face integration difficulties and need to be locally responsive.
5.1.2 Summary conclusion
The study concludes that there can be no single mode of entry that can be termed right for foreign retailers. The choice of entry would have to consider several other factors such as the sub-cultures, consumer characteristics, the local infrastructure, the regulations, past international experience, competitors in the host country, growth and sourcing opportunities.
Hence, international stores, retailers, and supermarket chains have paved the way for luxury brand retailers. These companies, such as Louis Vuitton and Ferragamo, have made investments as the first batch of luxury retailers to conduct business operations in China during the 1990s (A Plus 2007).
Countries which are host countries for foreign students get the opportunity to widen their educational facilities and technologies to attract students from all over the world. With growing number of students looking for education in foreign countries, it becomes possible for those countries to broaden their education and training institutes.
The discussion presented below represents the findings from the research made on the macro factors affecting the wine market situation in the country. It gives an overview of the “political, economic, social, technological, environmental and legal factors” (Xiu et al., 2013) that influence the industry.
With the pressure exerted by globalization, Chinese brands have to seek newer markets as domestic markets achieve saturation. Chinese brands have not been able to make deep penetration in the international markets due to the negative perception they carry in the minds of the consumers.
However, this posed challenges as retail grocery is a highly competitive, low-margin and high volume industry dominated by global chains where local adaptation is the key to success. China too attracted foreign retailers although government regulations in China in the 1990s were not very supportive of foreign retailers.
China’s admittance into the World Trade Organisation (WTO) in 2001 opened up the Chinese market to the rest of the world, and this enabled retail operations that were 100% foreign owned to operate. Retailers like Tesco, Carrefour and Wal-Mart who dominate the foreign-owned food retail market seized upon this opportunity.
54 pages (13500 words)Dissertation
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