Actuant Company Analysis, Phased Development Strategy In China

Since China's adoption of important "reforming and opening-up policy" multinationals have gained 30 years development experiences in China market.Initially from purely trading trial,to actively introducing their advanced technology and production facility to form joint ventures with Chinese firms under instruction of local government authorities,then to aggressively establishing wholly owned(sole-appropriation) subsidiaries through acquiring 100%stakes from Chinese partners and eventually setting up China holding company,their businesses were much more tending to large-scale and diversified operations.As part of their fast expansion plan,a vibrant access to broad range of merger and acquisition deals also played a big role.Within the past 30 years their investment return from China businesses fashioned a snow-ball effect-getting bigger and bigger following by its constant move,meanwhile,a large number of outstanding talents who meant a precious resource to China's sustainable economic development got trained in every fields from there,in addition,their strong presence in almost every kinds of businesses has boosted hundreds of thousands of upstream and downstream local companies' wild growth.Like flocks and herds' chasing after float grass,multinationals always kept very high business acumen toward how to obtain excess profitability by continuously transferring manufacturing base from one low cost country to another with even lower cost,as well as boldly entering into immature emerging market with enormous potential and selling costly local-made but international-branded products to new customer groups which accumulated strong buying power in these countries,they never stopped seeking such chances which enabled them to enjoy large benefit brought by both their intangible worldwide brand assets and low-cost-made product portfolios.As one of the multinationals which mainly served industrial niche market,Actuant incorporated first wholly owned subsidiary company in 1999 in Shanghai China,this article illustrated its 3-phase business development strategies including its tactics and achievements in target market selection,brand development,sales channel deployment,organization innovation,financial and operations management.Under current wide-spread financial crisis and gloomy global economic environment,this article also revealed some severe challenges faced by the company during its globalization process,provided several basic solutions against those visible problems,taking Actuant as an example,the article also intended to lure new thoughts and ideas in prospect of the multinationals business future in China.