Study Of China High-end Truck Market Entry Mode For M Company

Since China economy growth is being well catered on a stable rate, as well as those significant support on energy saving and environment protection topics from the government, the evolution and product/service upgrade in China truck manufacturing and logistic industry have become inevitable. According to government official document, China will establish more efficient modern logistic service system and refined network of transportation and infrastructure in 2020. This requires more efficient operation in future logistic, which leads to an upgrade of commercial vehicle, the most direct method to achieve this goal. As for multinationals who are seeking for oversea emerging market, China high-end truck market remains attractive. Therefore, for the purpose of minimizing investment risk and maximizing investment return, how to set up China market entry timing and entry mode has become a strategically important topic for both corporations and academics.This thesis first concludes previous studies on multinationals foreign market entry topics into systematic structure for a better overall view; then focusing on the gap between theories and reality, raises a decision-path theory for entry modes selection after studying on the existing China high-end truck entry modes; afterwards, a conclusion of the significance of risk factor in decision-making process has been brought out based on further study on entry mode selection factors; then further study lies on the history and future scenario of China truck market, as well as case-studies on existing Europe and Japanese truck manufacturers in China; at last, by applying TOPSIS(Technique for Order Preference by Similarity to an Ideal Solution) and AHP(Analytic Hierarchy Process) methods, a risk-evaluation based entry modes selection model has been brought out for the practical case of M company entering China high-end truck market, further conclusion and suggestion regarding China strategies are provided in the end.This thesis can be beneficial to those multinationals who are aiming at China truck market. For those who already entered, decision-makers can review and adjust their strategies accordingly; for domestic companies who are seeking for oversea business chances to expand corporate scale, this thesis is also helpful as a reference.