Eight key words of the future strategy of multinational household appliance companies
"multinational companies are not philanthropists or vampires. They just want to make profits, that's all."
in 1998, Harvard Business Review pointed out that the expansionism and large-scale mergers and acquisitions of multinational companies in emerging markets such as China have ended. If they want to further develop this market, they must answer questions such as which are the middle class, which business models can meet the needs of Chinese consumers, which business combinations can expand business opportunities, and which partners can increase multinational companies' understanding of the local area
eight key words of the future strategy of multinational home appliance companies
□ Ye Bingxi Pang Yahui
when we analyze the setbacks, failures, successes and dreams of Electrolux, Panasonic, whirlpool, Ge home appliances, LG and other enterprises in the Chinese market due to the high ambient temperature, our research and analysis track returns to the strategic level of multinational home appliance companies in China, Try to interpret the future around the questions raised in the Harvard Business Review
extrude the plastic in the granulator. From a series of case studies, it is not difficult to see that the era of large-scale horse race enclosure and competing entry of multinational household appliance companies in China has ended, and replaced by the further appearance of calm and stable Chinese market strategy; The era of multinational household appliance companies selling second-class and third-class products in the Chinese market has ended, and the era of selling their new products and even their globally synchronized products in the Chinese market has come, and so on. The transformation of multinational household appliance companies not only reflects the adjustment at the strategic level, but also reflects the evolution of China's strategy after these multinational household appliance companies adapt to the market in the early stage. This evolution focuses on the repositioning of the Chinese market, the re transformation of the production system, the re integration of sales channels and marketing strategies, the further control of operating costs, and the international recognition of the Chinese market
when we analyze the past of multinational household appliance companies, we focus more on their future. Through the study of these multinational home appliance companies that have encountered and are still suffering in the Chinese market, we select the results of these multinational home appliance companies' strategic transformation and market adjustment in the next few years, which have triggered two pairs of friction forces and corresponding moments as the concluding words of this special study
multinational household appliance companies first entered China, and have chosen joint ventures and cooperation due to investment policy restrictions and other reasons. However, in the actual operation of the market, they gradually found that as an investment strategy, the cost of joint ventures is high, but the efficiency of joint ventures is low. In the post WTO era, especially in the past two years, the sole proprietorship of multinational household appliance companies has shown an "extraordinary face", and "joint venture" is being replaced by "sole proprietorship"
when the Chinese market gradually becomes an important "pawn" for multinational household appliance companies to realize their global strategy, they are also clearly aware that only by completing the transformation of sole proprietorship, can enterprises improve the income of investment companies and fundamentally improve the operating efficiency of investment companies from the mechanism. Only when the sole proprietorship is completed, can the multinational company share its latest technology, management and experience with the Chinese market, transfer its higher-end products and manufacturing technology, and take globally unified intellectual property protection measures to protect the technology barrier free
the internal driving force of the recent trend of sole proprietorship comes from the change of relevant policies in China and the further opening of the Chinese market. At the end of last year, Panasonic Corporation of Japan began the sole proprietorship operation of nearly 50 enterprises under its Chinese company. As the first step of China's sole proprietorship movement, these multinational companies often integrate their marketing in China first. The performance of marketing integration is multifaceted, and channel integration is an important part of it. As many multinational household appliance companies invest in the Chinese market, and the Chinese joint ventures and cooperation objects of these companies belong to different property owners, the process of sole proprietorship will be quite long. For example, in the projects invested by LG in China, it has established 10 factories with different enterprises such as Chunlan and panda. As an internal personnel of Panasonic said, the cooperation between Panasonic and goldfish will end in 2014. Before that, it is still difficult for Panasonic to be wholly-owned. It will take quite a long time and a lot of negotiation to complete the transformation of the whole sole proprietorship. From this point of view, the process of sole proprietorship of multinational household appliance companies in China is quite long, and it will also be the most thorny problem for multinational household appliance companies in the future
mergers and acquisitions
multinational household appliance companies have entered the expansion stage after experiencing the adjustment and consolidation stage in the Chinese market. At this stage, mergers and acquisitions will be called a strategic direction in the Chinese market
previously, the main reason why multinational household appliance companies did not have the trend of mergers and acquisitions in the Chinese market is that they have just adapted to the Chinese market at this stage and strive to consolidate the Chinese market. There have been large-scale mergers and acquisitions among domestic household appliance enterprises, and these mergers and acquisitions mainly occurred between domestic strong brand mergers and reorganizations, local brands and weak brands. At that time, the relevant national laws and regulations did not appear that multinational home appliance companies could merge and acquire large state-owned home appliance companies, and the petrochemical industry should optimize and upgrade traditional industries, which was still a restricted area
after state-owned capital gradually withdrew from competitive industries and some domestic household appliance enterprises went through a new round of market competition, a number of previously strong enterprises were also unable to return or even suffered another round of losses due to poor management. These enterprises will face the fate of either being merged by multinational household appliance companies or reorganized by domestic comprehensive companies. For example, a declining brand like Lehua was acquired by TCL with the help of the government due to its poor operation. A French multinational household appliance company has also acquired a well-known domestic washing machine enterprise. It is said that whirlpool is planning to acquire a domestic refrigerator factory. All these illustrate the future of large multinational household appliances
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