2005Journal of Northeastern UniversityRequires access

Motives of Transnational Competition and Choice of Competitive Strategies for Chinese Corporations

Sun Guang-sheng

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Abstract

China, as a developing country, is now trying her effort to implement the policy going out, and facing a powerful competitive pressure. For Chinese corporations, which are operating transnational business, it is important to analyze and formulate correct competitive strategies. The current situation of transnational business operation is thus discussed for its motives, including bypassing various trade barriers to extend overseas market, seeking for resource and technology progress, choosing profitable region in the world and establishing internationally well-known logos. Three ways are proposed to analyze different corporations and then recognize the competitive superiority, i.e., the models of competitive status, value chains and life period of products. Therefore, some strategies are suggested for Chinese corporations to play a more conscious and active role in solidifying their own competitive superiorities, i.e., centralization, bypassing, technological localization and industrial integration.

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What this paper is about

China, as a developing country, is now trying her effort to implement the policy going out, and facing a powerful competitive pressure. For Chinese corporations, which are operating transnational business, it is important to analyze and formulate correct competitive strategies. The current situation of transnational business operation is thus discussed for its motives, including bypassing various trade barriers to extend overseas market, seeking for resource and technology progress, choosing profitable region in the world and establishing internationally well-known logos. Three ways are proposed to analyze different corporations and then recognize the competitive superiority, i.e., the models of competitive status, value chains and life period of products. Therefore, some strategies are suggested for Chinese corporations to play a more conscious and active role in solidifying their own competitive superiorities, i.e., centralization, bypassing, technological localization and industrial integration.

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Available abstract

China, as a developing country, is now trying her effort to implement the policy going out, and facing a powerful competitive pressure. For Chinese corporations, which are operating transnational business, it is important to analyze and formulate correct competitive strategies. The current situation of transnational business operation is thus discussed for its motives, including bypassing various trade barriers to extend overseas market, seeking for resource and technology progress, choosing profitable region in the world and establishing internationally well-known logos. Three ways are proposed to analyze different corporations and then recognize the competitive superiority, i.e., the models of competitive status, value chains and life period of products. Therefore, some strategies are suggested for Chinese corporations to play a more conscious and active role in solidifying their own competitive superiorities, i.e., centralization, bypassing, technological localization and industrial integration.

Key concepts: China, Industrial organization, Business, Competitive advantage, Competition (biology), Logos Bible Software, Resource (disambiguation), Value (mathematics)

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