| More and more Chinese companies, having won their spurs in their domestic market, are starting to explore new horizons through globalization. How should they make the leap from being successful Chinese enterprises to becoming excellent global ones? The aim of this paper is to analyze the internationalization of Chinese companies; in particular, the very successful cases-- Haier Group and TCL group. It focuses on comparison of their internationalization strategies by introducing UPPSALA Theory, Product Life Cycle Theory, and Network Approach as theory basis.First, this paper analyzes their differences from the aspects of entry models: Haier adopts "from difficult to easy" strategy, that is, entering into developed countries first, and then developing countries. TCL chooses the opposite way. Then the different brand strategies under different models are compared in this paper. Haier sticks to building is own brand while TCL takes the strategy of OEM and multi-brand building together. As for pricing strategy, Haier prefers market-skimming strategy to make it consistent with the product's 'quality image'. TCL tends to use penetration pricing strategy which makes it easily being accused of antidumping. In order to minimize antidumping effect, it adopts bypass export strategy to move production overseas.Second, this paper points out that localization, international alliances strategy and diversification strategy are the strategies two groups adopt in common, but each has its own distinct characteristics. Haier uses "three to one" localization strategy, including local design, local manufacture and local sale. TCL just focuses its localization in certain countries, such as Vietnam. As for international alliances, Haier concentrates on building cooperative relationship with other international corporations while TCL actively engages in many cross-national acquisitions in... |
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