Transnational Operations Of Chinese Household Electrical Appliance Enterprises Strategic Differentiation

The Chinese Household Appliances Enterprises (HAEs) have been growing up, but the competition in Household Appliance industry became more and more severe than ever under the context of globalization. The Chinese HAEs have to start their march on exploring international market. In Chapter I, the Article took a retrospect on the development history of Chineses HAEs.In Chapter II, the Article introduced some theories studying on the international operation, such as the The Eclectic Theory of International Production proposed by Professor John H. Dunning, the Product Life Cycle Moriarty proposed by Professor Raymond Vernon from Harvard University, the Theory of Comparative Advantage proposed by Kiyoshi Kojima from Japan and some other theories provided the theoretical support to the international operation.In Chapter III, the Article proved the necessity for the Chinese HAEs to start international operation by Value Chain Analysis. Furthermore, through the analysis on the industrial structure and competition, the necessity was proven from the microcosmic level. Generally speaking, there are four major models for the international operation of the Chinese HAEs. In Chapter IV, through comparison of the typical strategies on international operation of some Chinese HAEs, such as Haier, Hisense, Glanze and TCL, the Article tried to analyze the pro and con of the selected strategies. The typical strategies include the "first-difficult-later-easy" called as Haier Model, "first-easy-later-difficult" called as TCL Model, and "Middle-of-Road" called as Glanze Model. Haier and Hisense choose creating a world-renowned brand, but Glanze selected OEM & OBM. Haier advocates the diversified development, while Glanze is concentrated in specialization production. Haier, Hisense and TCL recognize on the localization strategy.In Chapter V, the article made suggestions on the measures that should be taken by Chinese HAEs and Government during the course of the international operation as per the conclusion from comparison of those companies.