Studies On Problems And Countermeasures Of Business Model In Multi-national Manufacturing Companies Under The New Industry Setting

After 30 years of implementing reforming and opening up policy, China’s manufacturing industry has made impressive achievements, it became the "world factory" position. The preferential policies and low cost resource absorbed a large number of foreign capital invest, it not only brought plenty of money for development of China’s industry, but also greatly promoted the development of China’s foreign trade. However, with the changes of China’s industry setting in recent years, such as production conditions, labor cost, and land cost etc, the foreign enterprises whom applied low cost business model become to lose competition in Chinese low-end manufacturing, some switch business to high-end manufacturing or services, some move their business to Southeast Asian, like Vietnam, Burma, because of low cost of labor and land. The China market is not like an "emerging market" but become a new and high-tech economy. Regarding to above significant changes of industry setting of China, multinational manufacturing enterprises facing increasing pressure on existing business model, how to adjust business strategy, how to change business model to maintain competitive advantage, and win-win with Chinese market, multinational manufacturing enterprises need to find solution, direction and path. By theoretical studying on nature, elements of business model, the relationship between business model and industry setting, business model innovation theory.Through analyzing the problems and challenges of existing business model of Chinese multi-national manufacturing enterprises, especially through typical case (Company A) study, it raises business model innovation recommendations and proposal to Chinese multinational manufacturing enterprises. Facing changes of industrial setting, the existing business model of Chinese multinational manufacturing enterprises needs to be changed urgently, by considering the new characteristics of industry setting, advantages and disadvantages of these enterprises, the Market-dominating pattern, open innovation business model is raised as a high potential model which suits for new setting, which will help to maintain a strong competitive advantage. By analyzing multinational manufacturing enterprises’ business model, it not just helps to enrich the business model literature, but also creates a certain reality and guidance for changes of business model for multinational manufacturing enterprises.