Multinational Company Localization Sequence Analysis

Integration (standardization) and localization (differentiate) the strategic choice, isdirectly related to the multinational companies within their competitive advantage use ofstrategic equilibrium with the host country location advantages.Their core competitiveadvantage with the host country specific factors of production or operating environmentcompatible with the coupling, the basic choice facing multinationals’ internationaloperations strategy formulation.In this paper, through the establishment of multinationalcorporations sequence of localized management structure theory, describe the process ofeconomic globalization, multinational integration strategy, localization strategy dynamicequilibrium.Localization is essentially based on the strategic choice of the host operatingenvironment differences for the trait.The most important feature of this strategic choice isto play to their core competitive advantage as the necessary foundation for the locationadvantages of the host country.Thus make adaptation to the local operatingenvironment.However, this adjustment in terms of breadth and depth, there is diversity ofchoice.The sequence of localized management structure is based on the "trade-offs" and"pecking order" decision-making mode, described multinationals localization strategicchoice and its evolution path.Studies have shown that, due to differences in the structure ofdifferent multinational production and operation, the through horizontal sequence structureanalysis, display different multinational integration and localization strategy equilibriumpoint difference.The conclusion shows that the the localization strategy elementsthroughout the different multinational companies operating strategies, the only differencelies in the localization of the structure is different.Longitudinal study of localizedmanagement structure sequence, mainly reflect the multinational companies with internaland external business environment changes, moving on localization and integrationstrategy equilibrium.The article also deeply analyzes the multinational companylocalization structure sequence of formation and evolution mechanism.To verify multinational localization strategy structure sequence, we use the cross-case analysis, usedto describe the different multinationals localization strategy selection feature.Multinationallocalization strategy in-depth study of the sequence structure is conducive not only toexplain the build path multinational international competitiveness, also has importanttheoretical and practical significance for enterprises to develop international directinvestment in China.