As Chinese economy having been globalizing rapidly since she had obtained a membership of WTO at the end of 2001, FDI to China has also been growing up to the volume of more than 5million dollars per year and FEIs in China has begun to shift their str...
As Chinese economy having been globalizing rapidly since she had obtained a membership of WTO at the end of 2001, FDI to China has also been growing up to the volume of more than 5million dollars per year and FEIs in China has begun to shift their strategies from localization to globalization at view point of macro perspectives. But, we can find more localized responses in terms of micro levels such as marketing, leadership, HRM etc.
This paper is going to suggest a hypothesis that the more globalized the business environment in China, the more localized elaborations to be needed for FIEs to respond to the Characteristic of the China market, which is beginning to intergrate into the global market. Actually, more than 300s MNEs of world big 500s have committed their core resources such as R&D center and marketing center as well as strategic center for global market. It means that the globalization of China market has made FIEs to take their commitment strategy to shift core competences into China, namely localization in terms of core resources deployment. It is quite natural that the more core resources shifted, the more localizing the administrative management of chinese subsidiaries needed.
This paper insist that the localization of 4Ps is quite essential for the FIEs to succeed and survive in the China market, especially product/price localization in terms of differentiation with low cost, integration & networking of distribution channel with SCM & CRM, local brand naming are the core competence to compete in the China market. This paper suggest the firms who whish to succeed in the China market must be aware that the characteristic of China market is fast changing, segmented and differentiated according to regions and income levels etc.