Research On The Internationalization Strategy Of Chenglin Group

With the development of the domestic sanitary ware industry,China has become the largest sanitary ware production base and exporter in the world.But most domestic sanitary ware enterprises are still exporting mainly for Kohler,TOTO,Hansgrohe and other well-known foreign sanitary ware brands,which are located at the bottom of the global value chain.How to break through the OEM model and enter the international market have become the key of the development of Chinese sanitary ware enterprises.As a typical representative of Chinese sanitary ware enterprises to be international,Chenglin Group was established in 1979 and has experienced the transformation and upgrading from OEM to ODM and OBM.Its main business is distributed in the European and North American markets,which has become the largest imported faucet brand in the United States and the largest production base of faucets and bathroom accessories in Asia.However,due to the sluggish economic environment in Europe and the United States in recent years,the continuous strengthening of the RMB,the resurgence of trade protectionism and the transfer of cost advantages to Vietnam,Malaysia,Mexico and other countries,the operating income of Chenglin Group has declined year by year and its international development has also encountered bottlenecks.Therefore,how to formulate and implement an appropriate international strategy to enhance its competitive advantage is an urgent problem that Chenglin Group needs to solve at this stage.Guided by the theory of enterprise internationalization motivation and related theories of internationalization strategy,this paper studies the internationalization development strategy of the sanitary ware industry from a micro perspective.It takes Chenglin Group as the research object and outlines its internationalization development process and motivation.On this basis,the SWOT analysis method is used to conduct a comprehensive analysis of the advantages and disadvantages of the international development of Chenglin Group,as well as the opportunities and challenges it faces.There are advantages in production and sales,capital,professional services and international operations,but some disadvantages in brand,asset structure,international market layout and talent cultivation.Chenglin will also face the new opportunities such as the rise of emerging markets,government policy support,upgrading of user consumption awareness and the wave of cross-border e-commerce,as well as the challenge of rising cost,sluggish European and American markets,competition between domestic and foreign brands,exchange rate and trade barriers.Then,using the optimized spider web model to quantitatively analyze the internationalization degree of Chenglin Group and found that its internationalization level is relatively low.There are shortcomings in brand effect,technological innovation and overseas capital management.Therefore,this paper formulates some suitable international development strategies by combining qualitative and quantitative analysis.Chenglin Group can choose to formulate strategies from four aspects:market development,product development,channel development and talent cultivation on the road of future internationalization,which will help give full play to its own advantages,seize market opportunities and respond to external challenges and achieve its international development goals faster.At the same time,it is also can choose to make up for the shortcomings of the enterprise in the three aspects of brand,capital management,technological and innovation through the brand internationalization strategy,capital internationalization strategy and R＆D internationalization strategy,so as to realize the balanced long-term development of its internationalization.