How to create competitive advantage for Chinese companies Dissertation

How to create competitive advantage for Chinese companies - Dissertation ExampleThe Chinese firms have been internationalizing because of the motives both at the firm level and the national level. At the national level, the governments intent to become the economic superpower and to utilize the foreign transfigure 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 practiced 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 detrimental gull image in the minds of the consumers. Other challenges faced by Chinese firms include system inefficiency, technical challenges and chapiter constraints. Because of the cu ltural heritage there is excessive government intervention and bureaucracy. The Chinese managers have limited disposition 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 system adopted by Haier quite a little help the Chinese companies arrive at competitive advantage. Findings reveal that the Chinese companies have to recognize that competitive advantage should be initially construct on a smaller scale as small companies are better positioned to understand and adjoin customer needs. They can overcome the negative impact of COO by building a spheric brand through imagery, logos, slogans and other brand elements. Developing own brand is essential for emerging MNCs as they can face extinction against global companies if they bow the foreign market as the OEM. Targeting the lowest wrong position can ruin the brand image. Focusing o n CSR activities to enhance the brand image can bring them at par with global brands. Incremental and sequential growth should be the strategy to enter foreign markets. Once established in the target market, the Chinese firms can then enter through mergers and acquisitions. The Chinese companies should not focus on ownership as a pre-condition. Entering through alliances and conjunction ventures, help in controlling costs and enhancing learning opportunities. Overall, the study concludes that Haier pursued a different strategy for internationalization which other Chinese firms can emulate. Effective leadership, combined with global strategy of incremental growth, branding and innovation with investments in technology and developing core competencies can help the Chinese firms overcome the negative impact of the COO and compete against the global companies. The study concluded by suggesting other areas of research on the subject. Table of Contents Chapter I Introduction 1.1 Backgrou nd 1 1.2 History of competition 3 1.3 agonistic advantage 3 1.4 The Chinese economy and the MNCs 4 1.5 Rationale for the study 5 1.6 Research aims and