Research On Transnational Strategy Of MDT Chengdu Subsidiary

As one of the key countries in the current global economic development,many multinational enterprises have established subsidiaries in China in recent years to carry out trading activities.By setting up subsidiaries,multinational enterprises expand their own operations and improve their business performance while promoting domestic economic development.However,in this context,many multinational enterprises often face problems in the process of setting up twin subsidiaries,such as the lack of relevant strategic thinking,the lack of scientific corporate strategy and the application of the local environment.This to a certain extent affects the trading activities of multinational enterprises,and how to establish and enhance a subsidiary’s transnational strategic solutions is a key point for its success.Based on the internationalization strategy of Chinese enterprises and related corporate practices,this paper selects multinational enterprise MDT as the research object to analyze the specific elements of its business strategy for its twin subsidiaries established in Chengdu.Using a case study approach,this paper analyses the internal and external environment of the Chengdu subsidiary of MDT as a sample company,using multinational strategy theory and competition theory as the theoretical basis for the study,to establish an applicable strategic plan.A large amount of primary and secondary data was collected through interviews with several senior executives of MDT and many minutes of high-level dialogue meetings,which provided the material basis for a comparative analysis of the strategies of MDT’s subsidiaries in the US and in Chengdu.Based on the materials of MDT’s Chengdu subsidiary and theories related to the competition theory,this paper formulates the business strategies of the twin subsidiaries of multinational enterprises from the level of competition and cooperation and proposes measures that can guarantee the effective implementation of the strategies of the twin subsidiaries in the process of business development.Firstly,developing innovative business systems and experimenting with non-equity-controlled management tools;secondly,making full use of domestic and international financial markets to focus on planning and integration for customer groups;thirdly,establishing a monitoring system involving multiple organizations to form a unified global supply chain;and fourthly,building a twin subsidiary’s terminal management network to maintain overall corporate market prices,etc.This study analyses the competing relationships between multinational subsidiaries,extends the application scenarios of competing theories,complements the study of the multinational strategies of twin subsidiaries,and provides practical guidance for multinational enterprises to set up twin subsidiaries and achieve sustainable development.