Research On International Market Entry Mode Choices Of Media Electric Appliance Company

Electronic appliance industry is experiencing a rising phase in recent years,which is getting into a market saturation situation either from output,product capacity or number of brands and enterprises.With the reinforcement of ‘Belt and Road Initiative’,many industries are ‘walking globally’.What is more,Chinese home electronic appliance enterprises are facing difficulties such as overcapacity and technique bottleneck.Under this circumstance,increasing number of companies chooses internationalization as a solution.Exporting and investing abroad are two main paths for an enterprise to internationalize.How these companies can make proper internationalization choices when confronted with severe trading environment is a hot research question.The internationalization method of Media has been researched frequently these days as Midea gets good results in international market by acting in a conservative manner and adhering to an orderly process.Accordingly,this paper takes Midea’s experience as an example to analyze its current situation in global market and then puts an emphasis on the group’s choice when deciding to engage in an international campaign.At the end of the article,some comments are given to Media’s international process and suggestive advice is also proposed for Chinese home electronic appliance enterprises when conducting an international business.It has been found that the internationalization method of Midea is a good model for domestic home electronic appliance enterprises.First,domestic firms are normally of smaller scale and lower technical level compared to multinational home electronic appliance enterprises;second,although a small number of national enterprises is going outward,they have little experience and are likely to suffer an impact brought by international market.Thus,Midea Group’s international route(OEM--joint venture--self-owned brand operation)can stand firmly and is worth studying.