Is It Too Late to Enter China ? Summary

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Is it too late to enter China? (Harvard Business Review, April 2000)

This article talk about China, and if nowadays it’s a good idea for the western companies to enter its market.

The article starts first in explaining foreign CEO’s must be aware about some Chinese government policies must be imposing. Per example some rivalry from state owned enterprises that have advantages or the ban for foreign companies from entering in sectors as telecommunications and medias. We can read then, this behaviour is quite justified by the fact that Chinese government has apprehension about the outside world and blames the USA of having created the financial crisis. Also, there are already a lot of competitors in the Chinese market, both foreign and local companies, and so it’s complicate to enter in the market but evidence is that “China will soon be the world’s growth engine in terms of output and consumption”. However, doing business in China it’s not what it used to be, and western companies but also the ones that are already there, have now to change their strategies and have a “one-world strategy with China and its core”. Indeed, in China, the writer suggests to consider 4 c’s when strategies are being made and not only 3 c’s because the Context (the fourth one) is important. The problem is that context has got 3 factors, and theses ones don’t stop changing:

-Official China: The government has policies and the companies have to understand that and make their strategic plan respecting the Chinese policy directions. (cf.GOOGLE)
-Competitive: AS China opened its market to foreign companies, there are a lot of competitors. Also, because of big investments (thanks to the cheap labour), China had big environmental issues. The companies have now to reduce theirs wastes, and be careful about the impact of theirs actions in the environment .

- Customers: There is a “substantial middle class” but also, a lot of people living in rural locations who are moving to...
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