Research On Marketing Strategy Of The MNCs' Subsidiaries In China

Since 1990th, MNCS gradually become the leading actors of foreign company who come to invest in China. Along with China's WTO entry, a tide of investment by MNCS surges in china. And now about 450 MNCS of the 500 largest MNCS in the world have invested in China. About 30 of them have founded reign headquarters. And the MNCS have founded more than 600 research organizations. At the same time, MNCS begin to empire their competition of value chain by other ways. It seems that to occupy the market in China has become the chief strategy of MNCS in China. The government, the companies and consumers in China has felt the influents that the MNCS has brought to Chinese economy and market. According to what we have talked above, the research of MNCS' marketing strategy in China become the hot spot of academies and companies.Compare with other research fields about MNCS, the research of MNC'S subsidiary company, especially the marketing strategy of the subsidiary company is a new issue in some measure. First, most research about MNCS' marketing strategy, is on the basis of parent company and subsidiary company. And the researchers always calls their research MNCS' marketing strategy in China. But they did not consider about the framer of the strategy: the parent company or the subsidiary company. And they did not think about: the difference status of them in the process of framing the strategy, the different choice may bring on different result. So there is weakness in the research fields. Second, the present researches, for instance the international strategy, the multilateral strategy, the global strategy and transnational strategy, are on the basis of the difference between parent country and host country. But they did not think about inside the parent country, there technology differences, income differences, and consumer differences. These differences will affect the parent company's strategies in their own country. Third, the present researches only look the subsidiary company as a cell of the strategy system of the parent company. It means that the subsidiary company is an individual in their researches. They did not think about the conformity of the parent company's value chain and the subsidiary's: the different subsidiary companies may affect each other in the framing of their strategies. So that to research the subsidiary companies' marketing behaviors in the value chain network is a new field in the research fields of MNCS' marketing strategy.To solve the problems above, we integrated theoretical studies with demonstration analysis and typical cases in this study. We analysis the main driving force of the subsidiaries 'evolution of marketing strategy, explore the evolution of their marketing strategy, sum up the evolution of the subsidiaries' marketing strategy path and stage, construct their basic pattern of marketing strategy.Domestic and foreign researchers' conclusions: as a module of MNC'S strategy system, the subsidiaries' marketing strategies, are not only constrained by their role in the MNCS strategic system, by the MNCS' organization and management pattern, by their continued existence, autonomy status and their types of industry, but also constrained by a variety of other factors such as the cultural differences between home and host countries, the performance of marketing. However, empirical studies showed that there were no significant correlations between the management patterns of MNCS that base on home culture and the formulation subsidiaries' marketing strategies. Through empirical study, we found that there is no significant correlation between marketing performance and subsidiaries' strategies, but the management patterns of MNCS have significant effects on the marketing strategies of subsidiaries of MNCS in China. About the first problem, the study found that: first, it is due to China's opening up for only a short time and multinational corporations invest in China for a short history, their subsidiaries in China often operate in China only in the early stages, marketing performance has not been fully realized. In particular marketing subsidiaries operating performance often doest depend on the ability of its own. It depends on the strategic decisions of the parent company and the uncertainty of the business environment. Not as a marketing strategy with the main reference conditions. The second reason is that China is a rapidly growing market, and the environment and the system is not yet mature and stable market. MNCS are often long-term strategic thinking of investing in China, focusing on the future earnings, rather than short-term gains and losses, therefore, Marketing is not entirely based on the short-term performance of a subsidiary company to change the strategic choice. Regarding the second question, the study concluded that the main reason lies multinational corporations with investments in China mainly from the developed countries, only a short time in China, have not accumulated a wealth of information and knowledge to operate in China. Therefore, in the early stages of its access to China's markets, tend to draw from the mother culture of the parent company management model directly applied to the operating subsidiaries in China, although there is a big differences between home countries' cultural and Chinese cultural. Such management is not necessarily suited to the Chinese market environment, often bringing huge cost of communication and management between subsidiaries and parent companies.The evolution of marketing strategy of Subsidiaries of MNCS in China affected by the parent company, subsidiaries and external environmental factors common constraints. These factors are always at the changes. Subsidiaries of the parent company and the external environment will affect the strategic changes. The changes will affect the strategy of the parent company's strategy for the evolution of their affiliates (such as subsidiaries of resources and capabilities, ownership changes, the spirit of innovation, etc.) changes in the marketing strategy will be driven subsidiaries for the adjustment subsidiaries of multinational companies in China, thus promoting the formation and evolution of a marketing strategy.Strategy paper from the parent company / subsidiary autonomy, the host internal differences / subsidiaries autonomy, transnational differences / host internal and industry differences / subsidiaries autonomy the four angles and so on. Construction of the subsidiaries of MNCS' marketing strategy model, the integration strategy, the parent company led Adaptation Strategies and Dual Diversity Strategies, subsidiaries led Adaptation strategies and Dual Diversity Strategies. The study found that impact on the evolution of strategic marketing subsidiaries of MNCS in China is a key variable in the marketing environment in China particularity Regional extensive and regional imbalance. The inherent differences between China marketing environment, subsidiaries of MNCS in China to seek to force integration and adaptation strategies in the strategic balance and Dual Diversity Strategy marketing strategies ultimately introduced.Based on theoretical analysis and empirical analysis, the subsidiaries of multinational companies in China will evolve into a marketing strategy for the integration of marketing strategy, adaptability and dual diversity marketing strategy in three phases. Early integrated marketing strategy for entering the China market is mainstream strategy. Subsidiaries to the parent company's general strategy in China transplanted directly to the Chinese market, completely rely on the parent company's expertise and resources to become implement the strategy in China, lack of marketing decision-making autonomy. Since 1990s, adaptability marketing strategy become the mainstream strategy of subsidiaries of MNCS in China. Subsidiaries in China had the power to the host country market and the home market and the difference between appropriate adjustments parent strategy marketing policy makers to become fully functional, but mainly relies on the knowledge and resources of the parent company. After 2002 dual diversity marketing strategy becomes the strategic trends of subsidiary of the MNCS in China. Based on internal differences of the host country's environment, subsidiaries in China have the right to make marketing strategy independently. Then subsidiaries in china become policy makers who pay attention to the integration performance and differences reaction ability of the host country fully functional. However, the study also noted that not all subsidiaries of MNCS in China to get to this stage will be a dual diversity strategy. Implementation of the strategy normally takes three preconditions: First, they need only satisfy different demands of customers; Second, the industry market size and potential market demand of the host; Third, multinational companies maintain adequate internal operation of the multi-national or transnational operations with the knowledge and experience accumulated. and can flow freely.The study found that strategic marketing subsidiaries of MNCS in China are two basic models for the evolution of performance, that the progressive mode and reform mode. Progressive model means that subsidiaries of MNCS in China gradual evolution of the marketing strategy. Seen an obvious characteristic of this stage, there are no leap forward in the strategic adjustment. This gradual evolution is achieved primarily through three paths: (1) the integration of marketing strategy from the parent company led to the adjustment of marketing strategies; (2) marketing strategy towards an integrated marketing strategy subsidiaries led adaptability; (3) Marketing strategy from the adjustment to double the differential marketing strategy. Mode change is the evolution of strategic marketing subsidiaries of multinational corporations in China jumping at some stage directly from the integrated strategic adjustments for the differences between the two strategies.The marketing strategy promotion of subsidiaries of MNCS in china, not only being ensued and phased in time, but also simultaneity occurred in space, those need our attention. Characteristic of dissimilarity subsidiarities of MNCS in china representes disaccorded on ensued and phased in time. SomeThe study about causation of marketing strategy promotion, strategy promotion mechanism, strategy promotion phases, and characteristic of strategy mode, not only extend the study system of company strategy about subsidiaries of MNC, but also complement the study system of international marketing strategy. At the same time, it helps Chinese enterprises to learn and innovate upon transnational marketing management from MNCS' experience, establish effectual marketing strategy and tactic system, and figure competitive advantage and core capability of international marketing for resisting impulsion and pressure from MNCS, entering into Global Market finally, and establishing Global Competitors Status.