Pain and new: multinational appliance companies in China New Games – Whirlpool, drum washing machine – household appliances
< BR> For some time, "no strategy for multinational companies in China" argument have caused many people's concern and discussion. So in the end whether the strategy of multinational corporations in China do?
<BR> From a series of recent cross-border
Home Appliances
The company's operations and strategy of the multinational appliance companies in China can see the changes: First, multinational appliance companies in China started taking large, eager to enter the era has ended, replaced by a calm and steady in the China market strategy more obvious, in other words, multinational appliance companies are slowly "into China," to do with "Chinese characteristics strategy." Second, multinational home appliance market in China to sell two or three streams of products are over, replaced in the Chinese market to sell their new products or even products of its global synchronization time has come. Third, multinational appliance companies to China market repositioning, re-transformation of the production system, on
Sell
Channels and re-integration of marketing strategy, further control on the operation costs, as well as international recognition of China's market repositioning.
<BR> First, the history of multinational corporations in China: Sino-foreign joint failure than success?
<BR> Keywords agitated, and the concept of conflict, lost opportunities
<BR> Early 80s in the last century, Japanese home appliance companies rely on to provide technology transfer of production lines and household electrical appliance enterprises in China has just started co-operation, the first to enter China's home appliance market. The late 80s early 90s, Japanese companies with products, home appliances and durable, high quality, exquisite form in the Chinese market and other characteristics of a good reputation in China have established their own joint venture. 90, South Korean home appliance enterprises to enter Chinese market. GE,
Whirlpool
, Maytag appliances and other U.S. companies entered the Chinese market at this time. Advance into the Chinese market multinational appliance companies in China due to local market conditions, competitive landscape, and consumer preferences of Chinese consumers do not understand, and many other factors, they have chosen to enter joint ventures in China. Because of the lack of choice of joint venture partners from the business philosophy, staff quality, corporate culture, investment motivation to conduct a thorough understanding of leading multinational companies and joint venture partners in the process of friction constant friction to happen frequently, the final to enable investors to take a "break up" ending. This outcome for both return on investment, profit targets causing enormous losses, but also to multinational companies paid a high time cost. A typical example is the United States and Beijing Snowflake Whirlpool, Siemens and the Yangtze, a joint venture between Bosch and the Mainland, and
LG
And Chunlan cooperation so.
<BR> Bosch – Shenzhou
<BR> Has a long history in many fields leading German Bosch Group in 1991 will be interested in assembling the joint venture. After several years of observation, in May 1995 formally signed Shenzhou Bosch and the establishment of Sino-German joint venture??
Guangdong
Shenzhou Gas Appliances Co., Ltd.. Which the German side into the fund 99 million yuan, accounting for 60% of the share capital, and the Divine inject 66 million yuan, accounting for 40% of the share capital. Germany accounts for a large share, and sent as a joint venture general manager of the original Divine, "the family" Zhang Hongqian chairman of the board. But the two sides not to brand equity injection.
<BR> From the two sides signed in February 1995, to 1996, the joint venture will hold its first order, the bilateral cooperation has been satisfactory, product development, quality management has been clearly improved, a joint venture to fame.
<BR> But since the March 1996 order the convening of the meeting, both sides began to emerge for various reasons and conflicts, market sales are in decline, in which water heater sales in 1996 to 13 million by 1997, were down in 1998 to 8 million and 3 million units, joint ventures, a serious loss. To December 17, 1998, Bosch headquarters in Stuttgart, the two sides signed the agreement broke up. According to the parties to disclose Divine: Divine joint venture with Bosch failure, in large part because Western companies and Chinese enterprises in management theory and methods in the failure of integration, but also in the Chinese market blindly Bosch brand limited Divine, trying to enlarge the brand Bosch the failure of his own heart.
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