A Study On Localization Strategy Of Multinational Furniture Company A In China

With the rapid development of China's economy and the acceleration of economic globalization,more and more multinational companies have entered China's office furniture market.Meanwhile,China's domestic office furniture enterprises have risen rapidly in recent years.They not only demonstrated great progress in technology,but also have distinctive advantages in product price and group bidding procurement,which caused the multinational companies to reflect on their own marketing strategies in China.These multinational companies began to realize the importance of effective localization strategy in the Chinese market.Many famous international office furniture brands have performed localized production and operation in China by means of acquisition and joint venture.Nevertheless,due to the particularity of the market operation environment in China and the uncertainty about the change of market environment,only by constantly improving and adjusting their localization strategies in Chinese market can the multinational corporations acquire sustainable competitive advantages.In this context,it is very important for a multinational corporation to take advantage of its strengths while taking Chinese sociocultural environment into consideration and implement its localization strategy according to the local conditions.As a world-famous manufacturer of office furniture,Company A entered Chinese market in 2003.It has been constantly adjusting its localization strategy concerning product production,marketing and internal management,in line with the change of Chinese market environment.This paper focuses on Company A,a multinational furniture company,and conducts detailed analysis of its internal and external environment in Chinese market,the reasons for it to implement localization strategy in China as well as the problems faced by it during localization development in China.Furthermore,Company A's advantages,disadvantages,opportunities,challenges,and other situations are also analyzed and researched so as to provide it with relevant opinions and suggestions on the improvement of its localization strategy in China and assist Company A to establish a long-term competitive advantage in the Chinese market.This paper consists of eight chapters.Firstly,it gives explanation to the research background,research purposes,research significance and the related theories of localization strategy.Next,it provides an overview of the development of company A in China and analyzes the reasons for it to implement localization strategy in China.Then,it gives an analysis to the internal and external environment of Company A in the Chinese market using the macro PEST analysis,Michael Porter's Five Forces Model and the internal resource capability analysis,as well as points out the problems faced by Company A during its implementation of localization strategy.Finally,it summarizes the advantages,disadvantages,opportunities and threats of Company A's localization strategy in China using SWOT analysis and makes recommendations for Company A's localization strategy in terms of production,marketing,human resources,R&D and logistics.In this paper,concentrating on Company A's localization development in China,concludes and organizes many research materials,and analyzes and summarizes Company A's localization strategy in China by means of theoretical research and empirical analysis.The research aims to provide Company A with appropriate suggestions on improving its localization strategy in China in line with its corporate vision and market positioning as a multinational furniture company.The research significance of this paper is to explore the ways in which Company A can make use of resources and advantages so as to implement a more appropriate localization strategy in Chinese office furniture market,so that more and more Chinese consumers will accept Company A's products and that Company A can hold more shares in Chinese market.This paper revolves around the case study of company A.It demonstrates strong practical significance in that it not only provides company A with localization strategy recommendations based on research and analysis,but also provides reference suggestions for other multinational furniture companies in China in terms of their marketing development.