Research On EU 's Market Entry Model Of Diesel Locomotive In China

With the establishment of CRRC and the further penetration of CRRC’s internationalization strategy, in addition to constantly consolidate the traditional markets such as Asia, Africa and Latin America, CRRC is also actively planning to expand the European Union market, extend the target market of diesel engine locomotive from developing countries to developed countries, and develop high-end products from low-end products. Through contest with strong competitors in European Union market, CRRC will improve the technology level, management level, and core competence of the enterprise constantly, improve the brand image of CRRC, thus to lay a good foundation for the international operation and sustainable development.The European Union is composed of many developed economy entities. International giants and local suppliers have taken root for a long time and the market competition is fierce. While CRRC’s brand awareness is not high in the market, thus it is very difficult to enter into the market. Therefore, choosing the appropriate market entry mode is the key to enter the European Union market, and it will also determine the effect of enterprise’s internationalization.Starting from CRRC’s present situation in the development of the European Union market, this paper further studies the current problems that may exist in the development of the European Union market, and summarize the research status of domestic and foreign relevant theories. Based on the exposition of relevant theories, this paper will analyze external factors and internal factors which influence CRRC choosing of entry mode of entering into European Union market. Through qualitative analysis on the choices of entry mode, combining with the characteristics of the actual business, this paper will determine suitable entry mode for CRRC to develop the European Union and put forward implementation method for the mode and the matters needing attention.This research holds important theoretical guiding significance for CRRC’s entering into the European Union and provides an important basis of lifting international operation level of CRRC, and also has a certain theoretical reference for other industries in China to enter the international market.