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Is it too late to enter China?

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Farah Abdullahi

on 4 November 2013

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Transcript of Is it too late to enter China?

Is it too late to enter China?
Should be straight forward
-high growth rate
-Economy not affected that much by the economic recession
-large population
China is always changing, be ready to adapt quick and change strategies.

Its never to late to enter China if you know what your doing
On the other hand there is a high risk
-intellectual property theft
- Restrictions on foreign ownership
-partners turning into predators
-rivalry from state owned firm

Business in china is not the same as it used to be
-Chinese economy is rendering the best strategies inadequate
-China a game changer
-C.E.O’s need to come with a strategy that can adapt

Before entering china you should know the context of china.
What is the context of china?
-Official china
-Competitive china
-Consumer china

Official china
-Economic liberalization will continue. (Growth generates legitimacy for china’s government).
-The government has retained ownership of key industries,
- Google clashing with the government.

Competitive china
-Open markets
Has largest start-ups e.g Huawei Lenovo ZTE.

-Large investments and cheap labour

-Government policy will drive a switch from waste and consumption to efficient and conservative companies.

Consumer china
-Large middle class

-Many brands and products more than US and japan,

-No brand loyalty and quick shifts in market shares.

-Taste’s become more diversified then western countries

-China's mass market will shift to a multi-tiered market. This would lead to suppliers turning into competitors.
Shaping a china strategy
Questions to ask
How open is- and will be-our industry in china?

What business models should we use?

Can we live with china’s uncertainties?

How can we integrate our china operations with our businesses elsewhere in the world?

Can we move more parts of our value chain to china?
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