Business in China Essay
For a foreign business, success in China is largely hinged upon the company’s ability to adapt in a different environment and to understand (and be accepting of) how much they simply don’t know. A company looking to enter the China market will quickly realize either they are in unfamiliar territory and proceed prudently with the right help, or, maybe because of ignorance or anxiety, they will act irresponsibly and fail.
Foreigners familiar with China may recognize that there seems to be an unending number of misunderstandings between China and the rest of the world. In a business context, these misunderstandings might range from scheduling a business trip to China during Spring Festival to not considering the government …show more content…
China should not be an afterthought. Seeing your brand in China as an offshoot of your existing brand can limit your success. Given that the China market is often the biggest in the world (with an exploding middle-class); any attempt to capture that market should be comprehensive and deliberate. Companies that have had success in China recognize (maybe because of past failures) that their efforts here should be wholly-formed visions specific to China. KFC re-invented its brand to suit their Chinese customers; Caterpillar made “China” a prong in the company’s overall strategy.
Don’t underestimate China. Companies familiar with American numbers might balk at Chinese numbers. In 2010, GM sold more cars in China than it did in the U.S. China is Apple’s second-largest market, with some predicting it will soon overtake the United States. Apple’s CEO, Tim Cook, has said that “the sky’s the limit in China.” Foreign companies shouldn’t be afraid of big. They should have a strategy that anticipates best-case scenario—even slow-growth can yield big results.
Companies should prepare to set up shop