Strategies To Entry China Manufacturing Market

3546 words - 14 pages

1.0 IntroductionIn this essay, I will represent some of the strategies for a manufactured products company in Malaysia to penetrate new markets abroad, especially the huge market of China. On top of that, I will also recommend some of the fall-back positions for the company to deal with in case of the recommend strategies fail.According to David Pollard (n.d.), the motivation for companies going international are from both reactive and proactive point of view: the reactive motivations are - "increasing international competition, increasing trade barriers, host-country rules, and customer demands"; the proactive ones are - "seeking economies of scale and new markets, increased resource access, cost savings and local incentives". Like what Czinkota, et al (2005, P. 4-5) said,Since the 1950s, the growth of international trade and investment has been substantially larger than the growth of domestic economies. Technology continues to increase the reach and eased of conducting international business, pointing to even larger growth potential in the future. A combination of domestic and international business, therefore, presents more opportunities for expansion, growth, and income than does domestic business alone.As globalization, internationalism has become the new trend for business in today's world, for companies to survive and to succeed, they need to cope up with the new trend to look for opportunities in the international market.2.0 An Understanding of Business InternationalisationInternational business "consists of business transactions between parties from more than one country." (Griffin & Pustay, 2005, P. 5) It has become a trend and is very common to involve in people's daily life. For example, as normal as the clothing we bought, the raw material could be from China or India, the separate parts could made in Taiwan, Indonesia, or Vietnam, and it was assembled in Singapore with workers from Sri Lanka, Cambodia, and finished products are sold in USA. The parties involved in such transaction can be "private individuals, individual companies, groups of companies, and/or governmental agencies". (Giffin & Pustay, 2005, P.5) Obviously, the differences between international and domestic business are depending on whether the transactions accruing within the national boundaries or not.As companies all over the world have been influenced by the business internationalism, and so does for companies in Malaysia. However, in order for companies to successfully expand internationally, a profound understanding of the business internationalisation is crucial. Companies has to realize that on one hand, international business activities can create more opportunities for company in terms of market expansion, faster new product development, mobilize of production except of land, allocation and better use of human capital, etc; on the other hand, it could also cause difficulties to the firm as it can lead to more complicated market environment, and more...

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