A Study Of Strategy Based On The Analysis Of FDI In Xiamen

Since wholly foreign-owned enterprises, Chinese-foreign joint ventures and Chinese-foreign cooperative enterprises have made a great devotion to the development of Xiamen and have been the main power and the backbone, it should be an important and practical problem( not only at present, but also in the future) how to recognize FDI's importance of the national economy and how to have a better taking advantage of FDI in Xiamen. However, since 1996, there has been a declining trend of FDI in Xiamen, all circles has pay attention to it. But there have been few articles about FDI in Xiamen. Because the thing in Xiamen is sensitive and different from the other city of China and relative to the situation between Taiwan and the mainland of China, even sometimes it's difficult to explain it using economic theories. Even if some articles about FDI in Xiamen published in the newspapers or periodicals, they were nearly simple, even some of them were a little superficial, and few examining the matter from the angle of the strategic management, let alone where Xiamen's comparative strength is when compared with Shanghai and Shenzhen. My research is carried on just under such circumstances.To begin with, the author reviews the history of FDI in Xiamen and analyses its features. Based on it, makes a thorough analysis of the importance of FDI to Xiamen's development. Next, the author summarize the theories and motives of FDI and combine it with the substantial evidence of the chapter 2 to analyses why the foreign enterprises invest in Xiamen. Thus, set up a model of structure about the main factors having positive or negative influence over taking advantage of FDI in Xiamen and point out that the greatest negative one is the small market after analyzing those factors deeply. Then, in view of the present situation, the external general environment, the competitive rivalry and the internal resource capability are treated as the main subject to get SWOT analysis. The last, on basis of the whole thesis, theauthor put forward a suggestion-give up the focused strategy while a relateddiversification strategy involving partly unrelated one should be adopted to build competitive advantages and take advantage of more FDI in Xiamen.