The Study Of Ernst & Young’s 2ed Localization Strategy In China

American accounting service industry in the world is developed in the world. Ernst & Young, as one of the big four international accounting firms, has great experience in developing overseas to the C hinese accounting service industry. Ernst & Young has expanded C hinese market with a long history over nearly forty years. From 1973 he set up offices in Hong Kong. Later in 1981, Ernst & Young became the first international Professional Company which gets the approval of the C hinese government to set up offices in Beijing. EY has been expanded its market in Beijing, Shanghai, Guangzhou, Shenzhen, Chengdu, Tianjin and other fifteen cities successfully, its localization strategy in C hina has a lot o f valuable experience worth to learn for C hinese enterprise.With the deep economic globalization trend, transnational investment, trade, capital, personnel exchanges have become increasingly frequent. C hinese government guided and encouraged enterprises to actively enter the competition in the international market, and that includes the accounting service industry. "C hinese foreign cooperative accounting firms localization scheme", "foreign CPA firms in mainland temporary performance of auditing business approval project related policy" limited the development of Ernst & Young in C hina. Because of the increasingly fierce market competition, the policy environment and other unfavorable factors, Ernst & Young’s development strategy in the C hinese adjusted.Ernst & Young, as the research object, is introduced by this study from the history to his current situation in China. And then we studied its motivation of its development in C hina. For the development environment, we analyzed the competitive environment from the four aspects: policy environment, human resources, economic situation, industry etc. According to these studies, we learned the further implementation of the localization strategy for EY. As a result of model analysis, I did deep study for human resource management strategy, product strategy and marketing strategy. To deal with all of the policy, EY did a lot of things to attract more company to buy his product. From the analysis of Porter five competitive forces models and regression model, I did a summary about three things that is human resources, products and marketing. For human resources, he put emphasis on the recruitment, training, and performance appraisal. For products, EY changed his business focus from audit to assist overseas mergers and acquisitions as well as the IPO business, and also strengthen the cooperation with the government. He set up a special department to improve the quality of assurance. And for marketing the establishment of more branches in the strategic region also increased the number of customers. Finally by the above research, I did some study on the development of C hinese accounting service industry and found out the problems he is facing and also give some advice on the above problems.