Md Microwave Oven Company—Research On The Development Strategy Of Overseas Market

Our country’s microwave oven industry, whether in manufacturing or seizing the market, has gained a rapid development since Microwave’s appearance in Nanjing after 1982. Up to now, most of the world’s microwave ovens are produced in China. In 2014, for example, for the total global sales of microwave ovens, China alone accounts for 67.59 million units. The foreign markets show an increasing need for microwaves year after year, and therefore the total imports has risen, but in fact the average price of exports is constantly decreasing, and the size of exports and export growth rate also decreases dramatically, especially in 2013 and 2014,the export volume of microwave ovens is less than other exported commodities of our country and the growth rate of microwave ovens is also slower than our country’s exported commodities. Till the first half of 2015, the growth rate of exports and export scale of the microwave oven has continued to decrease. In the face of an increasingly grim situation that microwaves export market has been in, China’s microwave oven industry-related multinational companies have to start trying to explore ways to achieve international strategic objectives. And in the process of expanding the international market, the development and implementation of strategies are the basis and key for success. Therefore, this paper studies how MD Microwave Oven Company enters the overseas market and selects which mode to achieve the goal in the framework of global value chains. In addition, it also analyzes the process and inspiration of Korean LG, Panasonic and American companies GE microwave products under the global value chain system, and conduct a conclusion for advantages between different companies with international characteristics, and the enlightenment on MD Microwave Oven Company’s multinational management from large foreign companies’ business strategies. This paper is divided into the following parts: The first part is the introduction, which proposes the research background and significance of this paper, describes current research and defines the research methods and ideas of this article; the second part is the theoretical foundation of this research, which reviews the global value chain theory, elaborates the theory of global value chain and international market entry mode, and the relationships between the governance model embedded with theory of global value chain and the ways that enterprises enter the international market. The third part introduces the evolution of global value chains of microwave in developed countries, including South Korean’s LG, Panasonic, and the United States’ GE. The fourth part analyzes and summarizes the ways and characteristics of embedded global value chain theory of MD Microwave Oven Company. The fifth part is a detailed analysis of the existing problems of MD microwave global value chain and facing the international environment, it points out the entry mode of MD Microwave Oven Company under global value chain on the basis of the conclusion of deficiencies of the embedded global value chain theory, and proposes international recommendations,. The sixth part is the conclusion and prospect, which evaluates the MD’s entry methods to international market, explains the inspiration that MD enters the international market for China’s home appliance enterprises.