Are Innovative Chinese MNEs Becoming Successful Brands Because Of Government Policies Or Effective Strategies? Case study of two of successful Chinese Brands: Haier and Lenovo

Johanna Eva Örvén

Student thesis: Master thesis

Abstract

China has received a lot of attention these past two decades. Western countries and their companies have found ways to overcome differences in culture and language, negotiate with Chinese suppliers, and win the Chinese customer. Western companies have invested heavily in China since the 1980s, and some were present even before that. Consequently, much research has been dedicated to learning how to survive and succeed in China. The past few years have witnessed an increased interest of Chinese companies to invest in both developed and developing economies. The fascination that lingers in this thesis is how they manage to enter developed markets where the intense international competition is daunting. The first thought is that policy reforms have contributed to this trend. The hypothesis therefore states that “Chinese companies have the capability to succeed globally because of political reforms and the early entrance of foreign multinational companies.” Curiosity invites proper investigation to see if there are other reasons behind this trend. The methodology is to research secondary data to achieve a holistic perspective. The topic is too new and the strategies of the Chinese companies of interest have not matured enough to allow an interview. Political reforms have stimulated both foreign investments and collaborations, and the development of local companies. The growth of the Chinese economy created job opportunities for millions of Chinese while generating purchase power. Chinese companies prospered at the opportunities that presented themselves over the decades. The chosen Chinese companies are Haier Group and Lenovo because these two operate in high-tech and innovative industries; and are successful both internationally and domestically. These two case companies can help portray how Chinese companies can compete with foreign companies in China, and how to enter foreign markets with comparatively limited resources. It appears that while political benefits and technologically advanced partners are great initiators for getting ahead, they need to be combined with innovation and entrepreneurial spirit to generate global success.

EducationsCand.merc.smc Strategic Market Creation, (Graduate Programme) Final Thesis
LanguageEnglish
Publication date2014
Number of pages77