Study On The Development Strategy Of Indian Transnational Operation Of Guangxi Liugong Group

With the continuous development of regional economy and globalization,a lot of Chinese enterprises choose to operation in the global market.Guangxi Liugong Group is one of the earliest construction equipment manufacturing enterprises,which realize the importance of international development and make its overseas assets growing out from nothing.Guangxi Liugong Group entered the Indian market in 2003 and set up its Indian factory in 2009,implementing the localization development strategy to take root in India.With the growth of Indian economy and the vigorous investment in infrastructure,the Indian construction equipment market has grown rapidly in the last few years,which has become an important market that many international construction equipment companies pay attention to.It is urgent to formulate its development strategy for Guangxi Liugong Group when it is facing fierce competition in India.This paper takes Guangxi Liugong Group's development strategy in India as the research object,analyze the external and internal environment it faces,the resources and abilities it has in India base on some strategic management theories and tools,such as PEST analysis,Porter's Five Forces Model,External Factor Evaluation Matrix(EFE),Internal Factor Evaluation Matrix(IFE),SWOT analysis and so on.Formulate its development and competitive strategies to make sure it can achieve its overall and annual goals.The first conclusion of this paper is that Guangxi Liugong Group should adopt growth-oriented overall development strategy in its transnational operation in India.Through intensive penetration,backward integration,horizontal integration and other development strategies,it can increase the existing products' market share in India,innovate new products needed by customers to enter new markets,and even expand to the markets of surrounding countries in India.Secondly,Guangxi Liugong Group should adopt the differentiated and offensive strategies and use its winning quality to gain sustainable competitive advantage.At last,it should strengthen management,improve efficiency by training global talents,innovating research,integrating supplying chain improving after-sales services and optimizing departmental function management,ensure to complete its strategic objectives and realize its vision.