Study On Localization Strategies In International Entrepreneurship Of Foreign Automobile Enterprises

Entrepreneurship is a well-known subject that is widely researched by academics. It is the process of realizing innovation, and the process of recognizing opportunities and grasping them. The definite goal of entrepreneurship is to grow and create wealth for an enterprise. As globalization is accelerating, a couple of large TNC start to turn their development focuses on international entrepreneurship, which is a process, for an enterprise based on its advantages at the time of seeking for competition advantage, by means of launching new business or establishing new organizations, creatively discovering and exploring international markets, realizing optimal allocation of recourses as well. The purpose of this process is to enhance the comprehensive performance of the enterprise.Targeted to the localization strategies in international entrepreneurship of foreign automobile enterprises, this paper will research how auto TNC, which are in new market environment and social situation of host counties, discover and recognize opportunities, optimally allocate their internal and external recourses, and how they comprehensively bring their R&D, production, sale, management and so on into host countries. Meanwhile, these TNC will perform citizenship obligation in host countries, even introduce and build their enterprise culture.In this paper, we use the study methods that combined theoretical and empirical analysis, case analysis and comparison research, comprehensive and abstract study. The study route is from a macro view, to the midst,and then to the micro. The paper, by means of introduction and inference, systematically summarizes the theories of entrepreneurship and international entrepreneurship, TNC and enterprise internationalization, and the localization theory of international entrepreneurship. It constructs a theoretical system of localization strategies in international entrepreneurship, and analyzes the reasons and influencing factors of localization in international entrepreneurship of automobile enterprises. Finally, the paper takes the typical cases of international entrepreneurship in foreign automobile enterprises as our main objects to study the localization strategies in international entrepreneurship of foreign automobile enterprises. This paper takes the macro theory as a guide, and takes the midst strategies as support, as to concretely analyze issues on a micro-level, striving to make comprehensive, profound research results, with strong persuasion and practical instruction meanings.Firstly, relevant study results of localization strategies in international entrepreneurship has been summarized systematically, with an appropriate summary and appraisement; on the basis of the study situation, we combine the theory of entrepreneurship and international entrepreneurship, trans-corporation and internationalization, among which, the theory frame of entrepreneurship, entrepreneurship process model, the dimension of international entrepreneurship, the mode and influencing factors of international entrepreneurship has been expounded. And then we define the concept of entrepreneurship, international entrepreneurship and localization strategies in international entrepreneurship. International entrepreneurship, on the basis of its own comparative advantages, in the meantime seeking for competitive advantages and by the means of developing new businesses and creating new organizations, to raise the overall level of performance, they creatively find and explore opportunities of international market, and they realize the process of optimization allocation of resources. The localization strategies in international entrepreneurship of enterprises, on the basis of specific operating environment varied in worldwide countries, is that the enterprises optimally allocates its own limited resources in different countries in order to obtain the best interests.Secondly, we set up the conceptual model of international entrepreneurship, which explained the process of international entrepreneurship: I.e. in the special environment of host country, the entrepreneurs, discovery and utilize the opportunity creatively, and make new association of producing elements, in order to achieve the purpose of international entrepreneurship. Under the guidance of this model, we construct the theoretical system of localization strategies in international entrepreneurship innovatively. The theoretical system includes for aspects - the impact factors of local environment in host countries, localization construction of team in international entrepreneurship, discovery and reorganization of local opportunities, and the conformity of local recourses. Of those factors mentioned above, entrepreneurship team, opportunities and recourses are mutually not only related but also restricted, meanwhile they are influenced by factors in external environment. Next we analyze the reason of localized international entrepreneurship and influencing factors, localization strategies of in transnational auto can set a good public image and integrate itself into the host society and culture. Not only can it reduce the overall cost of production but also can quickly occupy the host country, thus it can reduce external uncertainties;but the localization strategies in international entrepreneurship of automobile enterprises would be restricted by external factors, for instance, the economic development of host country, policy of automobile industry, varieties of consumer's conception on automobile consumption and the developing potentiality of automobile market, etc..Finally, we select three transnational automobile enterprises as our objects which are having high status in the world and typical characteristics, they are German Volkswagen Company, Japanese Toyota Company and American General Motors Corporation. We study their localization strategies in international entrepreneurship in China, analyzing from three aspects including team, opportunity and resource. And on the base of case studying, following the results of theory research, we construct the localization models in international entrepreneurship of the three automobile enterprises respectively. Through the analysis of the models, we can clearly find that the discrepancy of implementation on localization strategies in international entrepreneurship of automobile enterprises, and the influence on international entrepreneurship, at the same time, case studying also indicates that the three automobile companies begin to attach importance to localization strategies, in order to realize the target of international entrepreneurship.We can draw conclusions from the study above: 1. International entrepreneurship of auto enterprises is, to a large extent, affected by external environment. Enterprises should deeply understand the host country such as the economic growth rate, the level of national income and consumption level, the government policy on the auto industry, etc; 2. The key point to successful entrepreneurship in foreign auto enterprises is whether it can accurately identify the entrepreneurship opportunities in host countries. Moreover, the team construction of local entrepreneurship plays a critical role; 3. International entrepreneurship in auto enterprises, according to specific environment in host countries, reasonably and optimally allocates its own recourses and local recourses to achieve the expected goal of international business venture; 4. The specific form of localization strategies in international entrepreneurship of foreign auto enterprises includes 6 aspects, such as products localization, R&D localization, parts purchase localization, production localization, sales localization and brands localization.The localization strategies of international entrepreneurship studied in this paper plays a significant role both in auto enterprises and other TNC international entrepreneurship, even in local enterprises.