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How to localize the multinational business

Competitive advantage and the way business is re-positioning and portfolio. To Electrolux as an example. Electrolux to enter the Chinese market in the beginning, not the particularity of Chinese home appliances market seriously enough. According to the traditional model of Electrolux, a joint venture in China, and not put in specific management. In sales, Electrolux's sales model in Europe and the United States or the mall with the dealer, after signing the contract, made a shipment to the formation of a sale, the buyer should bear legal responsibility. Electrolux headquarters in Sweden, this set of managers all moved to China, the results of one year, the losses were as high as 1.5 billion yuan. The face of setbacks, Electrolux conscientiously sum up lessons,[link widoczny dla zalogowanych], recognizing that cultural barriers and service consumer weakness, Electrolux brand and Chinese consumers, the distance is too far, too unfamiliar. To reverse the unfavorable situation, must make a local Electrolux brand, and consumers closer distance,[link widoczny dla zalogowanych], so that consumers feel good and sense of identity, this will be the desire to buy the products. To this end, Electrolux determined to implement the localization strategy, the goal is to \After Electrolux rapidly through a series of measures to enhance the localization of Electrolux's competitiveness in the Chinese market. Also note that the implementation of localization can provide a more favorable local conditions, such as raw materials, components and machinery and equipment, in particular, whether sufficient and human resources to ensure the production and even R & D localization. (D) Note the characteristics of their own and future development plans 3t, J As mentioned earlier, the localization will not only increase business operating costs, will increase the difficulty of management, so companies should seriously consider making localized decisions whether such conditions . Kodak in 1994 as the United States operating in China in order to reverse this unfavorable situation, decided to change the past, sales channels,[link widoczny dla zalogowanych], the introduction of \This requires not only awareness of innovation and courage, and perhaps there is enough business to business strength and management capabilities. In addition, compliance with corporate globalization and localization business development but also the overall plan that the development goals of each subsidiary to the local market, depending on the direction of future development. At present, many large multinational companies in Beijing, Shanghai Research Institute and the research and development center established, and to be getting worse. Bill Gates wrote to Microsoft's message to the Chinese Academy gave away the secret: \limited to research for the Chinese market products, including research on social and market changes, to better meet the localization requirements. Ericsson (China) Co., Ltd. President Ruisi Mai also said that for Ericsson, China is not just a market, in addition to Institute of Ericsson China, they also set up a Beijing Mobile Media Laboratory, to conduct applied research As long as a non-competitor can enter the laboratory research activities. (E) To prepare a detailed overview of the market to seriously investigate the highly competitive retail market in the world today, Carrefour's success is that it's opening up international markets according to local conditions,[link widoczny dla zalogowanych], to take the \As sales manager Alan Di Carrefour Avery pointed out: \do market research. In order to enter the Chinese market, Carrefour made a two-year investigation, which made Wal-Mart is six years of preparation. China Capital Group companies during the days off Longmosike shop the market just three months of investigation to rush in August 1999 opened in many cases because of the local understanding is not deep enough, the opening was not long before problems one after another and to, barely 4 years after operation in June 2003 Guanzhang. This lesson is not a minority.
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