In conclusion, it is important that the conditions for transforming the enterprise from national transformation to internationalization are very important, but external factors cannot be used as much as possible.
The overseas investment factory, which has achieved production localization, has successfully avoided trade protectionism restrictions on export, but the high cost of the United States has almost swallowed the low-cost advantages of Haier’s accumulation in China. So, Haier began to seek new strategy, in June 2005, Haier announced plans to pay $2.3 billion for bid for the third major appliances giant Maytag, start a new international strategy.
Haier became famous in the refrigerator, and then became famous in-home appliances. After gaining a foothold in China, it has started to look abroad, such as Europe and America. Haier has been trying to expand overseas since the 1990s. At first, Haier’s strategy is to export products, but found that foreign approval of home appliances from China is not high, and the trade protectionism has restrictions on exports. After the acquisition of the failure, it started at overseas investment factory to produce local production in the direction of local production, with the result that the “trade wall” was not only successfully bypassed but the overseas sales were rapidly developed. According to the 2003 global ranking of home appliances, Haier has exceeded Hitachi as the world’s ninth and sales revenue exceeds 100 billion yuan in 2004, and entered the ranks of the world top 500.
Another case is about the Haier company, the internationalization of Haier company compared with Huawei started relatively early.
Huawei has been focusing on the progress of communication technology, and puts forward a fund that is not less than 10% of the sales volume every year in the field of research and development. According to the digital calculation of Huawei 2004 sales in the range of approximately 50 billion, Huawei has been put into the field of research and development of nearly rmb5 billion in 2005, which is a huge figure for general enterprises. Huawei’s overseas strategy and foreign direct investment, but the main is to establish a research and sales network. In terms of products, Huawei has always adhered to the way of exporting its own brands.
In 2004, it was the year of the international success of Huawei’s international strategy, and the years of continued investment have finally begun to produce a rich fruit. Its win is mainly in that beginning of its product breakthrough in Europe and the us market, the first income of oversea products exceeds domestic (China) income, and it has been successfully used to beat many international heavyweights and has successfully become a priority supplier of British telecom, and the huge sum of telecom products worth up to 150 billion yuan. China’s high-tech enterprises have finally gained the recognition of the world, and Huawei has begun to change the world’s vision.
Huawei’s internationalization takes the first step from the third world country’s manpower, first to attack the developed countries, so that Huawei began to acquire some foreign orders.
Huawei technologies co., LTD is a production and sales of communications equipment of private communications technology company of China, was formally registered in 1987. It focusses on ICT sector, insist on prudent management, continuous innovation, opening up and cooperation, in the telecommunications operators, businesses, and cloud computing terminal constructed end-to-end solutions in areas such as advantage.
4. Case of enterprise internationalization.
Every country has its own social culture. It appears that Muslims and Jew do not eat pork, so that meat products do not become popular in countries with such ethnic groups. These traditional cultures shape the way in which national behavior and the manner of perceiving the world, and therefore the national culture can be understood as a Shared value among the inhabitants of a country. Research shows that the influence of national culture on employees is greater than the influence of corporate culture on employees. In this sense, enterprises engaged in international operation must have an in-depth understanding of the local culture of the host country, and integrate it into the local social and cultural environment with a respectful and inclusive attitude. In the process of internationalization, the enterprises face, the major challenge is how to the diversification of social and cultural environment in different countries, formulate and implement effective international strategy.
(3) National culture.
(2) Economic factors. Economic factors that require pay more attention include: “1. Economic system; 2. Level of economic development; 3. Economic stability; 4. Exchange rate changes; 5. Tax policy; 6. Inflation.” (Jin and Duan, 2000)
(I) National politics. In an international operation, the political legal factors involved mainly include: “1. Political system; 2. National security; 3. Commodity inspection regulations; 4. Labor legislation; 5. Protection of knowledge products.” (Jin and Duan, 2000)
There are three main external factors mentioned in the Enterprise internationalization strategy (Jin and Duan, 2000): the first is the political factor, the second is the economic factor, and the last is the social and cultural factor. I will briefly introduce these three points, which will quote and refer from the book.
The global corporate environment must be more complex and variable than the domestic environment. Such an environment by a number of factors are intertwined, including political and legal factors, economic factors and social cultural factors. Therefore, the enterprise must pay more attention and pay attention to environmental factors during the transformation into an international operation process, and need to investigate the situation in different countries and find corresponding countermeasures.
In addition to the business’s own factors, external environmental factors are also important. It is because of good environmental factors that the number of modern international companies is rapidly growing.
3. External factors
Improving enterprises is the advantage of competition, which is the fundamental reason why enterprises are better than their competitors. Businessmen will expand their operation activities from a single domestic market to overseas markets, learn new technology and management experience in a larger range, and also accumulate knowledge of customers’ needs in different countries so as to conduct in-depth study and create higher competitive value for business opportunity.
(3) Improve company self-competitiveness (Jin and Duan, 2000).
From here, you can see that Dior has lowered the labor cost and reduces the pressure of technology.
The work of the engineering department at the Shanghai king bridge plant, which is mainly responsible for the maintenance and development of the production line, and the production line in the factory is mainly imported from abroad, and in the last few years, the golden bridge factory has begun to develop machines for new products.
For example, Dior has two factories, one in the French headquarters, one in Shanghai Pudong jinnia, and there will also be a small sub-assembly plant in Singapore. Here, the Dior Shanghai plant is not related to the Dior garment series, which is mainly responsible for producing the Dior cosmetic series in the LVMH group, while producing other brands of LVMH, such as Givenchy, Fresh Fresh, and Benefit, make up forever, etc.
After broadening the overseas markets, an enterprise can use the world as a blue book to establish factories in other countries so as to meet the cost reduction effect. This approach has given the company access to better and cheaper resources, such as cheap Labor (like China and Africa). Or they can set up a factory in the producer of raw materials to reduce production costs and achieve a low-cost advantage. Resources that bring low cost advantage include technology besides raw materials and labor.
2. Reduce the cost
After each company has changed to become an international business, it has become clear that the number of passenger sources of these companies has increased, and the range has become wide. Thus, it can be seen that the most obvious and straightforward reason for business activity in international business activities is to develop overseas markets. Businesses are looking for new opportunities for their country’s saturated (or nearly saturated) market. With the globalization of economy and information, consumers in the world can easily harvest the product information they want, which also means that merchants can spread information to them. This gives companies the opportunity to bring their products and services to a wider market.
1. Looking for new customer resources for existing products and services.
Each company has its own reasons for going global. They have different considerations, or are encouraged by various external factors. However, for whatever reason, the company is certain to give priority to its own interests, so the global management of the business is ultimately driven by the overall strategic thinking, and it can be said that in order to seek a greater range of advantages, go to compete with peers. Therefore, there are three motivations for enterprise internationalization:
2. Reasons for the enterprise itself
In the information age of the 21st century, more and more companies have transformed from national enterprises to international business. It seems to be a trend. Personally, I think the purpose of enterprise globalization is simply to seek a bigger market, find better resources and chase higher profits. However, aside from the firm’s own reasons, there are other factors that contribute to the growth of their enterprise. Modern society also provides them with a good environment, So the number of multinationals is growing. In this article, I will explain the reasons for the company’s transformation into an international company in different ways.