Opportunities And Challenges - Multinational Corporations In China, The Macro Market Environment And Strategic Analysis

As the Internet shrinks the importance of geographic distance, the TNCs nowadays are competing in globalizing markets. Meanwhile China economy is developing at an accelerating pace relative to the downturn of world economy, all TNCs prefer to carve out new market positions here to any other countries. The impact of WTO-entrance of China is profound. The coming of fierce competition and maturation of market-economy has changed the character of the market. This demands not only bold offensive strategies but also potent defensive strategies to protect positions previously won. To achieve competitive capabilities, alliances and partnerships are a necessity in racing against rivals to build a strong union presence in local market. And what the TNCs can and cannot do strategywise is constrained by what is legal, by what complies with government policies and regulatory requirements, by what is considered ethical, and by what is in accord with societal expectations and the standards of good community citizenship.This thesis concerns the issues TNCs face in crafting strategies for competing in booming market of China in the new millennium. It is recommended that the TNCs link their strategic moves with market change and search for local-responsiveness solution. Also local Chinese enterprises can use these cases for reference.