Research On Localization Business Strategy Of Multinational Companies In China

Since the 1980 s, the global economic situation, great changes have taken place in the global economy into the era of "international", the obvious characteristics of regional economic integration, multinational companies gradually become the main driver of global growth. Multinational companies want to deal with steadily in the process of this change of cross-cultural management difficulties and challenges in the process of investment, is necessary to adopt a more scientific more suitable for one’s own development strategy, improve the investment mode, management system and business strategy, and many other areas, to strengthen the company’s own competitive power, and slowly but surely on the international stage.Based on the analysis of the research on the basis of relevant theories at home and abroad, begins with defining the relevant concepts, such as multinational company and the basic meaning of localization and so on, and then the cause of the localization of multinational companies to operate, analyzes the advantages and disadvantages and the present situation, through the list of as many data as possible, hope more comprehensive understanding from the data to the actual situation of multinational companies operating in China.In this paper, our research mainly basis on ABB’s local business in China, and introduces the history of company’s development, the global business situation recent years and the existing of ABB group business department. On the basis of full understanding of ABB company, the paper using PEST analysis to analysis the political environment, economic environment, social culture environment and technical environment in detail, and also using Porter’s five analysis model to analyze the competitive environment of ABB company, from the perspective of macro and micro to analyze ABB company operating environment in China.Based on ABB’s environmental analysis, the article goes on to analyze the advantages and disadvantages of companies’operating in China. The advantage of ABB company is mainly about the advantage of pioneer, that is combined by two industry leading large companies combined; Scale advantage; product advantage; quality advantage; global operation network advantages and good performance, fast growth, etc.; ABB disadvantage is mainly about:local business level remains to be further improved, communication problems exist in the process of import order processing; Marketing strategy transformation difficult; External communication is not smooth; Human resources management faced with great challenge; Marketing channel is narrow, the management mainly relies on the electric power, petrochemical industry, etc.This chapter finally analyze ABB company’s local business for aspects of talent localization, r&d localization, production localization and social responsibility localization in China, and on this basis, this article predict the ABB company’s future trend in China, and puts forward some Suggestions for our domestic enterprises. Hope electrical manufacturing companies in China can see comprehensive multinational company investment in China brought about by the positive and negative effects, and also learn the lessons and experiences, improve the level of management, improve enterprise competitiveness, promote the domestic enterprises to the world, obtain a bigger development.Along with the rapid development of world economy, the domestic enterprises to go abroad, onto the world stage, we must learn international advanced management experience and the insufficiency of big companies, in the study and practice to grow unceasingly.