Research On The Internationalization Path Of Chinese Home-appliance Companies

With the rapid development of China's economy,many Chinese enterprises have gone abroad and have started the process of internationalization in recent years.Home-appliance industry,as one of the leading industries in China,has achieved rapid expansion of its overseas business in the past decade.But in the past two years,the United States has continually provoked a trade war against China.And the impact of COVID-19 and the trend of de-globalization have also made home-appliance industry's international development face more uncertain challenges.In this situation,how to choose a reasonable internationalization path is of great significance to promote the sustainable development of home-appliance industry's internationalization.The article took Midea Group as the research object and conducted an in-depth study on Midea Group's internationalization path selection based on the case study perspective.The article firstly reviewed the literature and determined the internationalization path from the two dimensions of market selection and entry mode.Based on the collection and coding analysis of case data,the current situation of Midea Group's internationalization path selection was analyzed in detail,and then the key influencing factors were extracted.The analysis model of key influencing factors of Midea Group's internationalization path selection was thus constructed.The article then analyzed the advantages and potential risks of its internationalization path selection.Finally,on the basis of the previous analysis,this article put forward the enlightenment and suggestions about the choice of home-appliance company's internationalization path.The study found that Midea Group had adopted the basic internationalization path model of expanding from emerging markets to mature markets,from OEM processing to new investment and globalized M&A.In the dimension of market selection,Midea's overseas markets had gradually expanded from developing countries such as the ones in Asia and Africa to developed countries such as the ones in Europe and the United States,and further in-depth layout had been carried out around the world on a point-by-point basis.In the dimension of entry mode,Midea had transferred from OEM processing and production,to gradually establishing production bases overseas,and then focusing on M&A and overseas new investment,committed to the localization of the brand in overseas markets.In the course of Midea Group's internationalization path selection,the target market size,the degree of competition in the target market,the geographic and cultural distance between the two countries wound have an impact on the market selection,and the company's own size,core technology capabilities,and policy environment in the target market wound affect the entry mode.These factors constituted a key influencing factor model for Midea Group's internationalization path selection.The results of the research are a supplement to the relevant theories of internationalization path selection of enterprises.The conclusions of the research are not only instructive to Midea Group's internationalization path selection in the future,but also provide experience for other home-appliance companies in China.