AC China Company Cross Regional Development Strategy

Accompanied with the China's development and opening, China certification business began in the 20th century, the late 70s and early 80s. First of all, the Certification business started from electrical & electronic products and then expanded to other product categories and fields gradually. China, as world production plant, the demand for product certification has growing a lot in the recent years. However, there are only 0.8% of the total registered enterprises in China have obtained the quality certification, while United Kingdom, Japan and other developed countries in general can reach 40%.AC started its business in China in 1994 and established the joint venture company with the China Certification & Inspection (Group) Co., Ltd. in 2003. From that on, AC formally expanded its investment in China and conduct certification business. However, the progress is slow and even today AC only established two labs in China at Guangzhou and Suzhou, mainly focus on the U.S. machinery and electronic products safety certification. This kind of test resources cannot meet the needs of manufacturers throughout China. After the certification regulation changed in United State from 1990s, AC's market share in China is threatened. How to enhance and increase AC's Electrical & Electronic safety certification market share in United States is the critical problem that AC should solve immediately.This article uses the case study method to make the strategic plan basic on the analysis of China business environmental, certification and AC's own resources, capacity and competencies. The strategy plan is to base on the current South and East's labs and then expands development at North or West of China. Therefore, AC can expand its scope of service in China and provide better local services to China manufacturers.