The Research Of The New Zealand Shirley Company's China Market Entry Strategy

Since China's accession to the WTO in 2001,the amount of foreign-invested enterprises in China and the number of branches established have maintained an increasing trend.In recent years,among foreign-invested enterprises entering the Chinese market,the proportion of small and micro en terprises has been increasing.These small and micro enterprises have great gaps with mult inational giants in terms of financial strength and risk control capabilities,so the path to enter overseas markets is also different.New Zealand Shirley is a small company which regards the sheep milk powder producing as its major business.In the past two years,under the attraction of huge volume and good prospects.Shirley has been seeking to enter the Chinese market for high financial returns and new business growth point.However,as a small-scale enterprise,there is a certain gap between its own resources & capabilities and the market opportunities.This gap constitutes Shirley's strategic goal of entering the Chinese market: brand expansion,long-term development and high return on investment.At the same time,the real option theory establishes t he mode in which Shirley enters the Chinese market in stages.Under the guidance of this model,Shirley's long-term process of entering the Chinese market is divided into five stages,the corresponding strategic sub-goals and key strategic initiatives of each stage are made based on its different characteristics.Through the implementation and adjustment of key strategic initiatives,the strategic sub-goals of each stage were reached,then the overall strategic goal of Shirley's entry into the Chinese marke t was finally achieved.In addition,as a powerful guarantee for achieving the general strategic goals.the strategic implementation assurance system,which is built around the strategic map and the Balanced Score Card,provides an implementation roadmap and performance monitoring system for the entire process.The strategic issue of Shirley's entry into the Chinese market is also a common problem faced by many foreign small and micro enterprises,and it has a wide representativeness.This paper adopts the classical strategy analysis method and real option theory to provide a reference method for other small and micro enterprises to enter the overseas market by solving the problem of Shirley's Chinese market entering.