Why Chinese Enterprises Failed In Transnational Operations

As globalization is an uptrend in nowadays, to look for a competitive universal marketing is the basic way for the enterprises joining the internationalizations. With joining WTO, the competitive environment of Chinese enterprises has changed a lot. It is an inevitable choice and historical necessary to do multinational marketing. Regarding the disadvantages of original economic structure,so Chinese enterprises are far behind the developed countries. The following text will focus on the product strategy, brand strategy, price-fixed strategy and channel strategy to analyze the causes of operational failure.The problem on product strategy is short of professionalization, credit standing and localized design. A lot of Chinese enterprises are lack of professional techniques in international market, many key devices of Chinese products depends on quoting other brands, so there is no comparison between made-in-China and foreign brands. After a long period, a vicious circle will affect transnational marketing.Regarding Chinese Market structure is not complete enough and man'mind doesn't meet economic demand, so they are lack of brand protection. On price-fixed strategy, price reducing has become the unconscious strategy of Chinese enterprises. The result of this is the reducing of profits and the short of resources.The reason of Chinese enterprises failed in trading with international on channel strategy is the misapplication of fixed mind of Chinese business management, which doesn't meet the international marketing environment. There is a world of difference between the international and national market, so it is not wise to merge or make a union without purpose. Regarding the management structure, the misapplication of management strategy leads the failure of the transnational business. Some Chinese enterprises beyond the borders are lack of complete human management, so sometimes they make errors while decision making, especially on investment, environment analysis, location set, partner choice and business execution.The obvious disadvantage of Chinese enterprises is the short of manpower resources. The excellent entrepreneurs who are familiar with international market are the key for Chinese enterprises joining the international market.Capital chain is one of the crucial issues on transnational operations. For lacking capital support of bank, the lower technical standard and without support of well-operation enterprises, Chinese overseas enterprises are difficult to reach an objective manageable scale.The followed text will analyze the failure reason of transnational business according the economic, cultural and political environment difference. To get the general causes of operational failure is the way to conduct Chinese enterprise joining the international market effectively.