Haier, TCL, Lenovo or Brilliance – the Chinese champions are conquering the Western markets. Both big state owned and private Chinese enterprises are increasingly active in high level outbound M&A, they build up high-tech factories and install R&D centers at home as well as in overseas. The Chinese overseas investment has increased dramatically – from some hundred million USD a few years ago up to billions of USD in 2007.

But the Chinese do not only expand quantitatively, they perform also a remarkable innovation offensive. Today´s China becomes rather a global R&D and design center than a workshop of the world. China´s top companies offer wireless LCD-TVs as well as telecommunications equipment, supercomputers and automotive hybrid technology. Their success is increasingly based on know how and intellectual property.

The Central Government supports the globalization of the Chinese champions strongly. Beijing´s strategy is named “Zou Chu Qu” – Going Out. The political objective is to create about 50 Chinese world class brands in the main industries which are able to compete with the Western giants. The Government supports the Champions mainly politically and financially, and Beijing encourages and promotes only the best. As a result, not the regional league, but an elite of Chinese companies is conquering the Western markets.

As a result, western companies face a totally new competition. They are strongly and lasting challenged and have to react adequately. What they now need is 1) China-related market and competitive intelligence as well as 2) competitive strategy.

The main questions are:
- Which Chinese competitors will attack us in our home market and our export markets? In what manner?
- Which of our weak points will they attack?
- What are their objectives, strategies and tactics?
- What about their own strengths and weaknesses?
- Which segments, channels and customers do they target – with which products, services and prices?
- Which know how and IPR do they own?

The range of possible competitive strategies is relatively broad. It goes from a frontal attack, based on innovation or discount brands, via defensive differentiation and niche strategies to offers of complex systems and complete solutions. In most cases, a mix of competitive strategies is recommended. However Western companies respond: the task is to get relevant and valid competitive information and to react strategically in time. For that, the German language book delivers important and valuable insights – based on years of consulting experience in China.

Contents:
1.    Zou Chu Qu – Going Out!
2.    Regions and Industries: Targets of Chinese Investments
3.    Strategies of Chinese Champions
4.    Chinese Outbound-M&A
5.    Who are the new Champions? 50 Company Portraits 
6.    China’s new Brand Offensive
7.    Which European Industries are hit?
8.    The Task: Competitive Intelligence and Competitive Strategy

Hans Joachim Fuchs, Die China AG. Published by Financial Times Deutschland, FinanzBuch Verlag, Munich 2007. 424 pages, Hardcover, EUR34.90. ISBN 978-3-89879-347-6. 

Last update : Tuesday, 27 May 2008

Keywords : Review, Haier, TCL, Lenovo, Brilliance, Germany, Europe, Financial Times

Average user rating

   (0 vote)