| Nowadays, the complicated international economic situation changes some industries’global pattern. The object of this paper is a state-owned chemical group called YT Industry. Benefited from the technical oligopoly of its main products-EBJ, the YT group has occupied half of the domestic market and expanded the business towards the global market by export. After its first successful overseas acquisition on a Hungarian EBJ producer called Borsedchem in 2011, the YT group finished its global strategic layout preliminarily. However, with the development of the cross-board market, YT group is facing more demanding trade barriers and fiercer domestic market competition brought by the international competitors such as Bayer and BASF. So YT group have to seek new strategic breakthrough.Based on these research background, the paper uses the SWOT tool to analyze YT group’s advantages and disadvantages to expand overseas market and the opportunities or threats it will face in this process. Then we draw a conclusion that the YT group has obvious inner superiority and great opportunities to pursue transnational business but huge threats from the perspective of outer environment. So we suggest YT group adopt ST internationalization strategy by choosing a target market and an appropriate way to enter into it.In order to achieve these objectives, the paper studies with the following steps:first of all, considering YT group’s basic overseas market foundation, the researcher choose the USA, India, Middle East, North Africa as the primary target market. Secondly, we analyze and compare these markets by Franklin R Root’s overseas target market entering selection theory and draw a conclusion that the America is the most ideal target market, based on the stable environment, considerable scale and high growth. Thirdly, we use the national competitive advantage model built by Michael Potter to compare the USA market with the Europe, the fist FDI target for YT group in the perspective of macro environment, production factors, demand conditions, related industry. We saw the comparative advantages of the USA. So we draw into the conclusion that American market is feasible. To tell the detail, we propose to invest in the South American, since it has low product cost and huge demand.direct export, indirect export, licensing and direct investment. With the aid of Loot’s target market entry preference model and the comparison between internal and external factors, we can see that the existing operating characteristics of the YT group matches the direct mode of operation very well. So we suggest the group to seize American market by foreign direct investment(FDI). Furthermore, the paper provides three FDI modes, that are building a new factory, M&A and joint venture. For the purpose of comparing the three FDI modes by a unified standard in the perspective of investment scale, profit contribution, risk, control, market share and so on, we rank these factors by weighted aggregation and draw the conclusion that building owned factory is the most beneficial to YT Group. Based on all of the above research, the paper suggest YT Group implement internationalization strategy by building the owned factory in the southern American.In order to guarantee the smooth implementation of the strategy, the author puts forward suggestions and measures from the following aspects:developing transnational corporate culture, decentralizing moderately on the USA program,strengthening personnel training and incentive,building foreign exchange operation platform, and encouraging technical research and cooperation. These measures are derived from the author’s independent thinking and include some constructive suggestions especially in the improvement of the group’s organization structure and the construction of exchange operation platform. Although the research is starting from the individual actual needs of an enterprise, we hope the strategic thinking have reference to more "going out" enterprises. |
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