Study On Foreign Market Entry Mode Selection Of China's Enterprises

Marketing internationalization is a basic performance of globalization. With the globalization of world economy, foreign market entry mode selection has become an important problem, and with the rapid development of China's economy, more and more China's enterprises have begun their multinational marketing operations. Foreign market entry is a very important process of internationalization for China's enterprise and a key question to cultivate China's multinationals. So research on foreign market entry mode selection for China's enterprise is not only significant for China's economic development, but also very important for the richness of multinational theory. And it has become a hot point for both China's enterprise practitioner and international management researchers.Cost/profit analysis is a very important methord for multinationals. The multinationals compare cost and benefit level of each entry mode, and choose the best mode according to profit maximation priciple. Many researchers put forward different enrtry mode selection moudles, such as Rugman and Casson. This dissertation formulates a mathematic profit maximizeation model to describe the foreign market entry mode selection strategies for Chinese multinationals, and analyzes optimal mode selection when confronting host country's barrier policies or without barriers for China's multinationals. Mixed entry mode is a new trend of foreign market entry selection practice and theory. This dissertation conducts a deep research on this area, and makes a classification based on it. Mixed mode cast a light to China's enterprises' mode selection. This dissertation researches the stregegies of mode selection for three kinds of Chinese enterprise. Based on it, a case study of Chines multinational's mixed mode selection process is given. The deep research, especially the analysis of application framework and strategy of mixed mode for china's enterprises is an innovation. Mode decision is a very important content of market entry theory. Traditional foreign market entry mode decision theory is based on research of western conglomerates. This dissertation points out that the traditional mode decision theory is not fitful to the little and medium-sized enterprise like China's multinationals. Through analysis of the entry mode decision character of China's multinationals, this dissertation outlines a decision framework based on cybernetic decisdion principle.Entry mode performance evaluation is also studied. Because of the gray characters of evaluation indexes for entry mode are analyzed, the dissertation proposes a method based on gray target theory, which can evaluate entry mode, so that an enterprise can select the most beneficial entry mode via it. In the end, a case is studied, proving correction and effectiveness of the method for the entry mode evaluation.Foreign market entry is a dynamic process in enterprise marketing internationalization. Since Johnson' research, many researchers, such as Welch and Perterson form Stages theory of enterprise' internationalization. Brititish researcher Leobord also testifies the relations between enterprise' internationalizationand entry mode selection. This dissertation analyzes the relation between entry mode selection development and internationalization process, and researches the mode selection evolutionary process of foreign multinationals in China. Finnally, according to internationalization development stages of multinationals in China, this dissertation classifies the process of China's enterprise internationalization into four stages: preparation stage, foreign market entry stage, expansion stage and experience stage, and the mode selection character of China's enterprises in each stages is described. At last development trend is also predicted.