The Challenge And Prospect Of Small-medium Sized Foreign Enterprises In China Market

Since the reform and opening up in China, a large number of small and mediumforeign enterprises flourished under the drive of flexible market mechanisms andgovernment special policies. They become the major part of introducing the advancedtechnology, expanding exports and promoting the development of market economy as wellas the solution for rural surplus labor force. In the30years of sustained development, theseenterprises not only promote the development of foreign exports but also lead the regionaleconomy and help to form the characteristics of industrial clusters in different region,which has turned into a very important part of national economy and is China’s mostdynamic economy groups and vitality of the economy entity. But when stepping into the21stcentury the survival of the enterprises environment has undergone tremendous changesand facing more severe challenges.This paper attempts to summarize the difficulties and problems that the developmentof SMEs are facing and then analyze trying to find a guideline for SMEs in order to letSMEs continue playing an active role in the national economy.This paper is divided into three parts:The first part is to analyze the problems that SMEs are facing now from external andinternal. External refers to macroeconomic environment and internal refers to the commonexisted disadvantages or shortcomings SMEs have.The second part is to example A company illustrating the situation and the basic statusof operation. Making comparison between A company and benchmarking companies andthen find the gap or shortcomings. Through analysis under the macroeconomicenvironment finding the deep-seated factors to enable A company developing as expected.The third part is a comprehensive analysis of A company in terms of resources andcapabilities comparing with benchmarking companies and then propose a way enhancingcompany’s core competency to solve the problems raised in the development period. The results of this paper indicate the direction for the future of A company’sdevelopment. Meanwhile through the formation of the company’s core competitiveness toprovide a reference for others in the same nature and circumstance.