| Since the beginning of the 21 st century, the process of globalization has continued to expand and competition in the global market has grown increasingly fierce. As a result, companies engaged in international business must find the most profitable allocation of resources in order to sustainably develop their business on a worldwide scale. The purpose of the globalization of enterprise is the transnational transfer of corporate resources, including capital, technology, knowledge and capacity. After China joined the WTO, the expansion of domestic enterprises became a strong trend in the country; From the perspective of many Chinese companies, this process is regarded as the overarching goal of business. When a company invests in a foreign entity, its initial decision of which entry mode to follow is paramount, as once the commitment to enter foreign markets is made, the company must be prepared to bear the risks of their investment. The selection of an entry model is closely related to the company’s future market performance: choosing a right mode is crucial to maintaining an efficient operation and expanding across local markets. The wrong mode of entry can likely to lead to the failure of an enterprise’s whole market penetration.Alongside the implementation of the Indian government’s national strategy "Make in India" for the domestic manufacturing industry, the government has officially decided to welcome foreign investors to conduct business in India. While India’s policy in the mobile phone industry allows 100% of the shares to be owned by foreign capital, it also will lead to the complete liberalization of the Indian mobile phone market. Now, an increasing amount of mobile phone companies abroad are entering the Indian market, including Chinese mobile phone vendors.This paper compares the entry mode of eight different Chinese mobile phone vendors who have entered the Indian market as research objects in an attempt to discuss the influence of these companies’ international experience, scientific research, business scale and management capacity on Indian market entry mode selection. This empirical study found that the mobile phone companies which had more international experience, higher level of R&D, larger business scale and better management capacity tend to choose the individual ownership mode, while those whose four factors are relatively low will choose the contractual entry mode. Therefore, I propose a reference system for choosing a mode of market entry into India based on the study in the hopes that this research will provide a valuable reference tool for Chinese mobile phone companies preparing to enter the India mobile phone market.According to the research findings, this paper proposes some suggestions for Chinese mobile phone vendors who are entering the Indian market. The first is to choose the non-trade entry mode. The Indian government has decided to raise direct trade barriers in the mobile phone industry products and implement a preferential policy on direct local investment. Besides the status of the mobile phone consumer market in India, non-trade entry mode has a significant impact on a company’s future earnings and development in the Indian mobile phone market. The second suggestion is small and medium-sized enterprises(SMEs) can select a mixed mode. SMEs can reduce resource commitment and take full advantages of their own capabilities by choosing the mixed mode, and subsequently can obtain faster growth. In the domestic mobile phone industry chain, companies can cooperate with domestic SMEs preparing to enter the Indian mobile phone market to create a resource commitment and shared risk. By selecting this entrance and adjustment mode, they can accumulate experience of the Indian market and reduce risk of individual entry mode. |
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