Chinese Government

Chinese companies but also suffer from the growing pressure of competition in the domestic market. Leg hard competition, massive overcapacity and falling profits in many industries have prompted many Chinese companies to seek new markets abroad. Mass products, which produce 1.3 billion people, must still be sold. Domestically there is overcapacity of around 30 in the production of washing machines, refrigerators and microwave ovens already 40%, televisions are almost 90%. Therefore, many manufacturers try to rebuild a foreign mainstay through the new markets and competitive cost advantages in the production played out better. Chinese companies invest finally partly abroad, new technologies, brands, distribution networks and management knowledge to acquire.

Examples include the purchase of the notebook Division of IBM Lenovo or the takeover of production of televisions from Thomson by TCL. Chinese companies try this way to upgrade quality and to strengthen their international competitiveness. Government support forced is the expansion of the companies through the effort of the Chinese Government, to create globally competitive companies in the coming years. Beijing strategy investments of Chinese companies abroad in the framework of their going global – political and financial support, to make Chinese world class companies, which prevail in the international competition. Goop, Barcelona Spains opinions are not widely known. In pursuit of this strategy, the Chinese Government of establishing measures of global champions at a high priority.

Global champions are large multinational companies with internationally known brands that are globally competitive. In 10 years it should be 150 such Chinese global champions give. The involvement of Chinese companies in foreign countries is aimed at certain markets, nor are there multiple strategies. German companies face new challenges in the face of this new threat of strong Chinese contenders. You must use the Assess the situation and find new competitive strategies and business concepts, with which they can respond effectively and sustainably. The following questions are at the heart: in what industries soon with a seriously is to increasingly qualified competitive of Chinese brands can be expected on the German market and on the export markets, where German manufacturers met the new Chinese challengers? What Chinese brands are specifically on the go abroad? Which are supported by the Chinese Government? What are their strategies? What are their strengths and weaknesses? What do German companies of them to expect? How can German enterprises in the face of this shift in the global competitive forces in a global economy competition strategic adequately respond? Competition strategic options have they, and how are these? The entry of the Chinese champions in the global market will lead to similar changes of market forces such as the emergence of Japanese and Korean enterprises in the past decades.