Chinese Home Appliance Enterprises' International Competitiveness And Transnational Business Strategy Research

Along with the development of economic globalization, foreign direct investment (FDI) has become the main drive of the world economic growth. Facing more and more intensive competition from domestic and international enterprises, Chinese firms have to implement the strategy of"Going Out"to share two markets and two kinds of resources. The competition in household appliance industry, one of the mainstay industries in China, is more severe than ever. Under the circumstances of limited profit margin and accelerative developing channel and technology, how can Chinese household appliances enterprises reach the first-class range, increase the international competitive capabilities and craft the strategies of internationalization is becoming the key issue of their survival and development.At the first place, this paper introduces some theories studying on the international competitiveness and discusses the essential elements of competitiveness. Secondly, through the industry value chain analysis, international competitive environment analysis and SWOT Model analysis, the paper summarizes the international competitive situation of Chinese household appliances enterprises. At the same time, the competitive capabilities of international operation for Chinese household appliances enterprises have been pointed out. Furthermore, by introduction of development history and industrial characteristics of Chinese household appliances enterprises, this paper proves the necessities and feasibilities of foreign direct investment for Chinese household appliances enterprises. Thirdly, after discussing the relationship between the international competitive capabilities and FDI, this paper takes a retrospect on the development of international operation of Chinese household appliances enterprises and introduces the general entry modes taken by those enterprises. Moreover, the author compares the different entry modes through case analysis and claims that Chinese enterprises should choose the proper entry mode according to the specific internal capabilities and external environment. Finally, this paper puts forward suggestions on the measures that should be taken by Chinese household appliances enterprises and government agencies respectively during the course of internationalization as per the data and conclusion from comparison between the Chinese firms and international enterprises.