The Research Of International Market Entry Mode Choice Of Chinese Microwave Oven Enterprise

Microwave oven industry is one of home appliance industries in China with mostsevere competition and highest concentration. It's also one of the most mature homeappliance industries worldwide which has been almost fully shifted to China. In thiscompetitive environment, enterprises' competition, multinational operation, and entryinto international market depend on right position in global value chain more and more.Based on this context, firstly, this paper begins with the analysis of value's conceptionand connotation, by identifying the inherent connection from value structure, valuerelationship, and value creation, clarifies international market entry mode as OEM,ODM, OBM, and OSM in perspective of value creation approach, and then definesthem according to the characteristics of value creation links and value chain position.Then, based on the relationship among global value chain, value creation approach,entry mode, and competitive advantage, this paper builds up a research framework ofinternational market entry mode choice in perspective of global value chain, putsforward two basic logics, and the co-evolution model of global value chain andinternational market entry mode, which comprises three aspects of factors as "Tianshi","Dili", and "Renhe".In the "Tianshi" evolution of global value chain of microwave oven industry, thesupplement to each other by both technology advancement and market developmentreflects the interaction between the intellectual property content and value content invalue creation links. While in the "Dili" evolution, the one-by-one emergence of majorproduct markets and the gradual shift of major production area, also reflect that boththe advantageous factors of value creation links and value content space provided bydifferent countries and areas promote the change of location and link distribution ofglobal value chain of microwave oven industry. The adjustment of their value creationapproaches, namely their international market entry modes, by four representativeenterprises from four countries indicates that "Renhe" should form co-evolution with"Tianshi" and "Dili". Finally, the international market entry mode choice based on global value chain andits evolution is fully reflected in the case of Midea Microwave Oven again. At thebeginning of its microwave oven endeavor, according to the "Tianshi" and "Dili"situation, "Renhe" condition from both itself and other competitions in the global valuechain at that time, Midea Microwave Oven promote their "Renhe" in various valuechain links respectively, and then choose suitable international market entry mode inthe different developing period of both industry and itself.