How to create competitive advantage for Chinese companies - Dissertation Example

Extract of sample
How to create competitive advantage for Chinese companies

The Chinese firms have been internationalizing because of the motives both at the firm level and the national level. At the national level, the government’s intent to become the economic superpower and to utilize the foreign exchange reserves drove the Chinese firms to seek overseas opportunities. At the firm level, the Chinese firms were motivated to internationalize in order to acquire resources from the western countries in the form of knowledge, products, technology and strategic position to secure raw materials. However, they ventured into foreign markets without preparing themselves for the challenges that lie ahead.
The first and foremost challenge is the Country-of-origin (COO) perception which lends a negative brand image in the minds of the consumers. Other challenges faced by Chinese firms include system inefficiency, technical challenges and capital constraints. Because of the cultural heritage there is excessive government intervention and bureaucracy. The Chinese managers have limited understanding of the local tastes, habits and preferences. They lack in service efficiency and they are conservative in spending on advertising and promotional activities.
An evaluation of the theories and the strategy adopted by Haier can help the Chinese companies achieve competitive advantage. Findings reveal that the Chinese companies have to recognize that competitive advantage should be initially built on a smaller scale as small companies are better positioned to understand and satisfy customer needs. ...
Download paper

Summary

This study was undertaken to gain insight into the factors that can provide the Chinese companies competitive advantage. With focus on Haier, one of the successful MNCs from China, this study aimed to determine the factors that could help Chinese companies gain competitive advantage against global companies…
Author : zvonrueden
Download 1

Related Essays

Managing Value for Competitive Advantage Company Analysis
The rapid changes in business environment in the 21st century demand that businesses reinvent themselves in order to remain relevant. The economy has changed from being commodity based to become a knowledge –based one. Sources of value creation have shifted from tangible assets to intangible things. Advances in technology and globalization have given the issue of making networks and building long-term relationships more prominence (Castell, 2000). Simply put, in the information age, the flow of communication plays a vital role in enabling the business to succeed.
...
12 pages (3012 words) Essay
An evaluation of competitive advantages of electronic advertising to companies in UK - Asda and Tesco
This analysis is primarily an evaluation of the market potential of electronic advertising for businesses in the UK, with case-studies of notable examples. The relevant findings that necessitate studies such as this include data that portrays as many as 14 million households in the United Kingdom going online to discover current details about goods or services in September of 2009 – 14 million within just one month. (Office of Fair Trading, 2010) Other relevant findings indicate an ongoing growth rate in the subsequent advertising revenue that can be achieved for those that take advantage of...
60 pages (15060 words) Dissertation
Research of China's Luxury Goods Market- How Chinese Enterprises Get out From "Made in China" to Create Domestic Luxury brands
Recently, however, with an increased spending power among Chinese consumers along with reduced government restrictions, luxury brands from foreign countries have experienced the pressure of strengthening their commitment to Chinese mainland to maintain competitive advantage and avoid losing to rivals. Luxury is a subjective concept that is constantly developing, hence its varied definitions. Nonetheless, luxury has typically been used to characterize a state of great comfort or a desirable item (Park, Rabolt, and Jeon 2008). Luxury brands significantly differ from others in such a way that...
20 pages (5020 words) Dissertation
The Determinants of Sustainable Competitive Advantage in International Marketing
Same way many other prominent companies failed to develop properly in international market because of their misinterpretations and wrong perceptions about the sustainable competitive strategies in international market. Knowledge management, cost leadership or differentiating, innovation or development of new products, timing of introduction of new products, customization of the product and technology, superior technology, ability to adapt with local cultures, commitment to demonstrates corporate social responsibility, geographic dispersion of activities etc are some areas in which...
8 pages (2008 words) Research Paper
Developing Competitive Advantage
In analyzing the information sharing, this paper will look at relevant examples so as to elaborate on the inherent need of information to both the customers and the firms. Discussion The supply chain becomes more efficient with the increased coordination of activities due to automation. Consequently, the need for inventories is reduced. Proctor and Gamble (P&G) is a company that has been operational in the world for a long time. The manufacturer has a relationship with the retailer Wal-Mart (Clark & Lee 2000, p. 126). The relationship between the two companies has to be analyzed from a...
6 pages (1506 words) Essay
An investigation into Chinese consumers' reasons for purchasing luxury brands in the UK
The Journal of International Management Studies, Volume 5, Number 1, April, 2010. P 189 27 LeCompte, MD and  Schensul, JJ. 2010. Designing & Conducting Ethnographic Research: An Introduction: Volume 1 of Ethnographer's Toolkit, Second Edition Series. Rowman Altamira, Edition 2 27 Lu, PX. 2011. Confucianism and Conspicuousness. Elite China: Luxury Consumer Behavior in China. John Wiley & Sons. Book 27 Mason, R. 1993. Cross-Cultural Influences on the Demand For Status Goods, in European Advances in Consumer Research Volume 1, eds. W. Fred Van Raaij and Gary J. Bamossy, European Advances in...
24 pages (6024 words) Dissertation
Discuss, using examples, how the Internet may change Michael Porter's five competitive forces.
The introduction of computers and internet has significant effects on Porter’s five forces model. According to Poon (1997), global computer network has far-reaching abilities and is capable of reducing the normal business expenditure. This paper analyses how Internet may change Michael Porter’s five competitive forces. How the Internet may change Michael Porter’s five competitive forces? Internet and Threat of substitute products Threat of substitute products is increasing day by day in global market after the arrival of internet and the subsequent development of ecommerce. As per the...
5 pages (1255 words) Essay
Got a tricky question? Receive an answer from students like you! Try us!