Operations of Chinese Multinational Companies and Strategies of Market Entry Mode

摘要

With the further enhancement of global division of labor and the unprecedented growth of foreign direct investment, it has become an inevitable trend for Chinese based companies to operate internationally in order to be able to compete in the global marketplace. To choose the correct mode to enter the foreign market has therefore become one of the most important decisions to be made for those companies engaged in the multinational operations. Export, strategic alliances and other forms are well accepted early market entry modes, but they do not appear to provide long-lasting competitive advantages to these companies once they have been established into the country, which then calls for the needs to choose higher level entry modes, such as transnational mergers and acquisitions. Many factors including the targeted market, the particular industry, nature of the business and its product, all have strategic implications in the selection of a suitable market entry mode.