21st Century Economic Report Roland Berg
Feng Kai Le Zhou Wei
In combination with years of consultation experience and analysis of the survey of overseas business of China, Roland Berg believes that there are some overseas business successful experiences to learn from all industries: ◎ Pay attention to the core competitiveness of enterprises ◎ Clear business Competitive strategy ◎ Comprehensive consideration of a variety of influencing factors ◎ gradual overseas expansion method ◎ cultivate and introduce international management management personnel
Pay attention to cultivating companies core competitiveness
Since the process of relaxing control is still very slow, foreign investment has also been very obstacles, so it can be said that the development process of China's leading companies in the past few decades is relatively smooth. But this does not mean that the success of the domestic market is light for these companies. Because these companies are also experiencing the changes in the market environment during the development process, the perfect market and distribution channels are also gradually formed in the accumulation of the month. It should be sure that these companies have achieved certain progress and are mastering more and more accurate market numbers, and can make their own judgments for those who provide products or services. However, they have not formed a strategic grasp of overseas investment projects, and have not yet formed a clear understanding on a strategic meaning of the company's future development. For competition on the risk-filled international stage, Chinese companies must work hard to improve their core competitiveness. We believe that a clear strategic positioning is critical in overseas expansion. Through the analysis of the facts and the idea and understanding of their own advantages and weakness in the new market, rather than touching the freedom free expansion is the key to achieve overseas operations. First, companies should analyze their own resources, knowledge, and capabilities, then choose and give full play to one or more of the advantages. For example, the labor cost of Chinese enterprises is very low, the quality is high, which makes it a significant advantage in production, so Chinese products, especially textiles, home appliances and light industry have strong competition in the international market. force. Second, Chinese companies should also strive to improve market analysis capabilities and accurately locate their core competitiveness. The extensive growth mode in China has failed in the overseas market. When considering where, when and how to operate overseas, policymakers must have keen forward-looking capabilities, and they can trial when they are expected, and the future development direction of industries will be exposed to the future, and the new competitiveness is cultivated. Competitive advantages. To this end, Chinese companies should make future industrial pattern, and cultivate new core competitiveness based on forward-looking predictions such as changes in people's demand, technology development, domestic and foreign market development, and cultivate new core competitiveness, and try to continue this ability. Constantly developing in competition, constantly growing.
Clear business competition strategy
More than 30 years of planned economic system makes Chinese companies to face direct market competition. In the overall environment of the current domestic market, the leadership of foreign companies exacerbate competition in most industries. Although China's leading enterprises generally pay high attention to the competitive pressure of foreign peer giants, it will be more intense, but the competition between the original enterprises in China will also be more intense, but the competitive status of its domestic competitors may produce overseas operations. Competitive contrast changes lack your understanding. However, it must be noted that these domestic competitors often operate overseas with the same or similar competitive factors. Taking low-end personal computers and peripheral markets as an example, Lenovo and Great Wall have achieved quite successful companies in China, not only from foreign competitors, but also the market reputation is constantly improving. Therefore, it is conceivable that the cultivation of their core competitiveness is expanded around similar price segments and similar products. But we know that overseas personal computer low-end markets are far less than the Chinese market. If they decide almost at the same time, they have begun to implement overseas management, then the result is probably self-conscious. Therefore, domestic leading companies must seriously examine their impact of their domestic competitors to implement overseas management on their competitive status, and dynamically analyze the current and future competitive status. From the international market, China's leading enterprises will face new competition with foreign peers in a strange environment. But no matter on scale, technical or management, China's leading companies are quite large compared to international leading multinational companies. Therefore, after it comes out of the country, there should be a very clear understanding of the competitive status of itself in the host country, and even global. When analyzing the international competitive status of the company, it is generally classified according to the core competitiveness of the company's own core competitiveness and the main competitor's core competitiveness in the international market. When considering implementing overseas operations, most Chinese companies should choose a multi-country market strategy that is more clear. In the future, with the continuous improvement of the company's competitiveness and the continuous deepening of overseas business participation, gradually transition to the global market strategy. Foreign direct investments using global market strategies generally have a wide internationally operated enterprise, which has the purpose of achieving the best configuration through horizontal division of labor and vertical divisions worldwide. These companies seek efficiency investments by making full use of relative advantages of different host countries to achieve cost minimization and maximization of profits. Such investments are very obvious in overseas business, while developing country companies or problems due to their own capabilities, or because of both the extent of overseas markets. This form is also very small in implementing overseas business. Comprehensively consider a variety of influencing factors in overseas operations
When considering implementing overseas business, it is not limited to the four aspects mentioned above (whether expanding, why expand, expand where to expand), successful enterprises will consider more related Factors, such as the core competitiveness of the parent company and the status of the industry, the future development trend of the target market, foreign investment methods, human resources status, etc. A successful decision is a result of profoundly investing many influencing factors and their interactions, and the company will make adjustments and corrections for these factors with the continuous further strengthening of overseas operations.
Select progressive overseas expansion
From the actual situation of China's leading enterprises, on the one hand, there is a lack of understanding of overseas markets, especially overseas competition. On the other hand, there is a lack of financial strength and lack of human resources is also the main factor in restricting overseas business. Therefore, choosing a gradual expansion method is more suitable for most Chinese companies. Moreover, with a flat-screening management structure and internal information sharing a smooth enterprise, step-by-step expansion is more useful for enterprises to accumulate overseas operations along the learning curve. It is true that choosing a progressive expansion method may miss some good investment opportunities, but must note that non-progressive expansion methods such as establishing joint ventures, direct investment buildings, etc., generally involving a large amount of capital investment, and once invested, the company is very It is difficult to easily turn these investments to end investment projects. So if the company is investing in the implementation of overseas operations through the above non-progressive expansion, it is necessary to fully weigh the risk of risk and potential investment opportunities for overseas markets. Specifically, when implementing overseas business, China's leading companies can choose international trade as a guide, and then, then, the company's production and operation link will expand the company's production and operation, according to its own actual conditions, from low to high-level selection Direct exports, set up overseas representatives, establish overseas branches, overseas subsidiaries, etc. In the product sales market, if Chinese companies are mainly exported to a country or region (such as trade enterprises), or because domestic markets tend to be more fierce competition (such as home appliance companies), forcing companies to find new markets In the case of, the company can establish its own sales channels in the target market in the product sales, replacing the sales model of the entrusted agent, so that the company has more timely information, more independently implements the company's own sales strategy. With the rise of sales and the increasingly perfect sales channels, companies can gradually strengthen information, services, management, and even R & D, etc. in the target market, so that opportunities can be better grasp. If the local production conditions are advantageous, the company can transfer some or the entire production link to the host country market, on the one hand, improve the longitudinal integration capacity of the corporate value chain, and also use the convenience of the host country to enhance the overall overseas business of the enterprise. Ability and competitiveness. The stage of stage expansion is in fact the process of gradually upgrading the company overseas, adopting this natural progressive overseas business method, which is conducive to accumulating the experience and lessons of overseas business in practice, and understands the information of the target national market (such as tax, law. The overall environment of the aspects), exercise overseas business talents. More importantly, in this way, it is possible to effectively control the huge risks in overseas business, which is conducive to achieving the final success. China has an important role in companies that have implemented overseas business companies, which generally have a good overseas sales channel. With the development of business, the progressive stage of expansion is used in accordance with the reality of enterprises. Cultivate and introduce international management management personnel
