Study On Multinational Retail Enterprises' Entry Mode In China

Entry mode is not only the primary task of the international enterprises, but a vital international marketing decision. Our country opened the retailing more fully to MNCs, with its accession to the WTO, especially on December 11, 2004. It meaned that multinational retail enterprises would not be restricted on investment location, scope of operations, shares in proportion, and also there would be more foreign-invested stationed in China market. The entry of the multinational retail enterprises influenced in many aspects, raising both opportunity and challenge. Therefore, research on entry mode of multinational retail enterprises has great significance for both Chinese retail enterprises and government.Based on the resource-based theory, the thesis probes entry mode of multinational retail enterprises. First, the thesis elaborated the interrelation of entry mode, firm-specific resources and investment behavior of the firms. The main considerations of the firms are the ability to transfer advantage generating resources to host country partners and the likelihood of establishing competitive advantage in the host country, when they decided enter the host country. After that, the thesis analyzes empirically the choice of multinational retail enterprises entry mode in our country. In light of the dynamic characteristics, MNCs tend to take full-control modes, so as to make full use of their resources both inside and outside their organizations. Last, the research gives some suggestions and enlightenments to our retail enterprises and the government, faced with the entry of multinational retail enterprises. Our retail enterprises should make full use of local advantages and create competitive advantage. Meanwhile, the government should constantly improve laws and regulations and create favorable conditions to our own enterprises in market conditions.