International Business Case Study Analysis: Recommendations

This case study analyzes the international business strategies employed in 2004, focusing on the challenges and opportunities in the Chinese market, particularly in the context of competition with companies like Motorola. The analysis highlights the initial strategies, such as entering the high-end market and cost reduction, while also providing recommendations for improvements. The study suggests that partnering with local players, acquiring Chinese companies, and increasing investment in research and development could have been more effective strategies. Furthermore, it emphasizes the importance of industry and competitor analysis to gain a competitive advantage. The document references several academic sources to support its analysis and recommendations, making it a valuable resource for students studying international business and strategic management.

Running head: INTERNATIONAL BUSINESS
INTERNATIONAL BUSINESS
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1INTERNATIONAL BUSINESS
Analysis of the case study
The strategies undertaken in 2004 were appropriate as per the time, the multinational
enterprises has to beat the competition in the Chinese market, where the big companies like
Motorola already decided to increase their investment. In international business to survive the
local players is a big challenge (Williamson & Zeng, 2004). Discussing about the first strategy
in which the many multinational companies entered the high end market, entering a high end
market means not targeting the market that have the maximum number of customers, penetrating
into the market targeting the middle class would have been the most appropriate strategy
(Armstrong et al., 2015). The strategy of reducing the cost can be said was one of the most
effective strategies, once the cost is being reduced then the price of the products will also be
decreased thus making the product or service attractive to price sensitive customers (Cavusgil et
al., 2014).
Recommendations
In 2001, the companies missed one of the most important strategies to enter the foreign
market. In order to enter a foreign market in partnership with the local players would have been
one of the most effective strategies. Collaborating with another company would have reduced the
capital for entering the foreign as well as risk of failure of expansion strategy. Joint ventures are
one of the most commonly used strategies for entering a foreign market. Buying a Chinese
company could have been another effective strategy that would have helped the companies to
have a good market share from the very beginning (Jagersma & van Gorp, 2003).

2INTERNATIONAL BUSINESS
Apart from the strategies the multinationals could have increased their investment in the
research and development department. Before entering an international market it the very
important to do industry analysis and competitor analysis, this would have helped the
multinationals to know the weaknesses of their competitors and what are the preferences of the
customers they are targeting, this could have helped the multinational easily create a competitive
advantage over the local players (Wild, Wild & Han, 2014).

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References
Armstrong, G., Kotler, P., Harker, M., & Brennan, R. (2015). Marketing: an introduction.
Pearson Education.
Jagersma, P.K & D.M. van Gorp, (2003). “Still Searching for the Pot of Gold: Doing Business
in Today’s China,” Journal of Business Strategy 24, no. 5 27-35.
Cavusgil, S. T., Knight, G., Riesenberger, J. R., Rammal, H. G., & Rose, E. L.
(2014). International business. Pearson Australia.
Wild, J. J., Wild, K. L., & Han, J. C. (2014). International business. Pearson Education Limited.
Williamson, P., & Zeng, M. (2004). Strategies for competing in a changed China. MIT Sloan
Management Review, 45(4), 85.