Strategic Study On Hualu's Entry Into Indian Market

Five years into WTO by China, the Five-Year Transition Period as a solemn commitment to the world's top trade organ will soon become due. As a part of the commitment, China's service sectors including engineering, finance, insurance and banks will be accessable to foreign funds and international engineering firms will be competing with the Chinese engineering firms on projects both at home and abroad. Yet the domestic market of more supply than demand has aleeady resulted in a hard competition. It has become as clear as crystal that a firm that wishes to make a business abroad while taking a strong footing at home has to increase the core competency in order to find the new way out, by carrying out innovations in technology and management.The author of thesis tries to conduct a comprehensive study, both quantitatively and qualitatively, on the exterior surroundings, interior conditions, the opportunites, threats, strong points and weak points of Hualu, export oriented governmental policy and the existing stratigies of Hualu, by using Competitiveness Matrix and SWOT Matrix, based on Hualu's needs to enter into the Indian Market, on the Author's knowledge and experience in trans-national business operations, and on the Author's first hand information about the specific conditions in chemical induatry in India. The opportunities that Hualu can make use of include 1) the central government of China always encourages the Chinese engineering firms to develop business outside China, 2) the national economy in the target market is growing rapidly, providing good business prespects and 3) the ever increasing bilateral trade between China and India is powering Hualu's desire for entry into the market, while the threats that Hualu have to chellange are hard and fiece market competition; there are a number of restrictions on China's FBI, opening of economy to, and market access to China; ingress by potential competitors and general lack of credulity on the part of Indian customers. The study arrives at the competition tactics of SO Strategy, aiming at penetrating into and exploring the tarket market while trying to make use of the opportunity by starting with engineering design backed with technology licensing and expanding to other ways of project contracting, in order to achieve a successful entry.