Особенности ведения бизнеса в Китае (The peculiarities of marketing strategy development in China)
Эстоно-американский бизнес колледж
кафедра
менеджмента и маркетинга
Р Е Ф Е Р А Т
«THE PECULIARITIES OF MARKETING
STRATEGY DEVELOPMENT IN CHINA»
Исполнил: Торп Андрей
Группа ЕТ 402
Проверил:Шпилёв Андрей
Т А Л Л И Н Н 2003
СONTENTS
1.Introducing…………………………………………………………………………3
2.Lobbyng……………………………………………………………………………5
3.Budget offer………………………………………………………………………..8
4.Technical discussions……………………………………………………………...9
5.Final offer…………………………………………………………………………10
6.Formal negotiations……………………………………………………………….11
7.Managerial implications…………………………………………………………..13
8.Conclusions……………………………………………………………………….15
INTRODUCING
Since the 1970s,when China’s foreign trade policy was liberalized ,many
Western firms have been very enthusiastic about capturing this market of
over one billion consumers.
On average ,throughout the 1980’s ,China was visited by one Western
government ad-
visor every week.This interest of Western authorities and businesses can
be compared
with Western interests in Japan,a far more important trading
partner.Western busines-
ses’ interest in China decreased somewhat after the Tiananmen Square
incident in 1989.
However,interest from trade and industry continued ,and increased even more
in the
1990s.Lately,West European governments and businesses have also shown the
interests
in China.The picture is not much different where American interests in this
market are
concerned.In 1980s the trade between USA and China rose to more than US $ 5
billion
In these years,there was great demand in American goods.The trade relations
between
the USA and China received a serious set-back after the 1989 incident.But
the interest in China,both from the authorities and the business sector in
the USA revived again when
it was given the ranking of most-favoured nation (MFN) in the mid-1990s.
Since 1979,when the new regulating joint ventures was introduced by the
Chinese government ,there has been a tremendous increase in joint-venture
agreements with
agreements with foreign investors.In 1984,China signed 741 equity joint-
venture agreements with foreign investors.By the end of 1987,the number of
enterprises with
foreign investment in China exceeded 10,000 with a total coctract value of
almost
US $ 22billion and paid-in value in excess of US $8.5 billion.In October
1984,the government declared that central planning would no longer be used
and that a system of interfirm contracts would be utilized to
facilitate the distribution of raw materials and goods.During the same
period four special zones Economic Zones (SEZs) were established to
encourage foreign investment.As a result,foreign direct investment
increased and attained real momentum in 199-1991.By 1995,it had reached
more than
$ 30 billion.
In spite of this revived interest and fact that the Western companies have
been dealing
with Chinese for almost two decades,these firms are now facing difficulties
in negotiating
business deals with China.We believe that, basically,the problem is one of
understanding
Chinese culture and perculiarities in behaviour .Such an understanding
Chinese culture
is essential to do business in China and to maintain business relationships
in the long
run.
We all know that negotiation process is considered as an interaction
process of reaching agreements to provide terms and conditions for the
future actions of the parties involved.
Being a process,it can be divided into distinct stages.For the purpose of
this study
and consistent with earlier studies the process of negotiations between
Western firms
and their Chinese counterparts is divided into six stages: lobbying ,budget
offer, technical discussions,final offer,face-to-face negotiations and
implementation.
LOBBYNG
The negotiation process starts with early contacts with the Chinese
authorities,in which
customer is trying to establish whether or not the selling firm has the
technology or
capabilities to deliver the particular project.The Western firms are
normally expected to
China and present their technology and products.The firm has to conduct
presentation
session for the number of people and groups.In these sessions the firm has
to convince
the Chinese that it has a technology they want and that it is competitive
as regards technology recources and realibility.At this stage,the firms
should realize following:
Contents of deal:The first point to consider consists of identifying the
implications of project;i.e,that the contents and objectives of the deal
match of the firm.Questions such as
„what can the firm gain or lose in both tangible and intangible terms?“ or
„what is at stake?“ should be answered.
The preparation and planning of negotiations takes a lot of time and the
more information
a firm can gather at this stage,the better the of success it will the later
stages.
The firm should gather information on both customer and the competitors,and
on which
other alternatives are available to the customer.And the firm has to
compare its strengths
and weaknesses,for the particular project,with that of its competitiors..If
the competitors
are stronger,in one way or the other,the firm has to develop arguments to
expose their
weakness.If the firm knows that a Japanese firm is also competing for the
same project
and that the Japanese offer is cheaper than the firm is own,it has to
develop arguments
explaining why the offer more expensive.For example,in one of the projects
this was actually the case and the Swedish firm was also able to convince
the Chinese negotiators
that althogh its price was higher,the capacity of its machines and that the
technology
was better in terms of quality as well as its technolgy which would
facilitate future
expansion.This argument was accepted by the Chinese as they do always rely
upon
the best technology.If the company is able to convince that its technology
is the best
one and up-to-date as regards precision and future development,negotiations
become
easier.
In larger scope, the counter trades are quite common in China.The reason
for this demand
is that the Chinese tend to save on the foreign exchange.Thus it is quite
common for Chinese to demand that a percentage of the products to be
produced by the project in question by the selling firm into its home
market or into the third market.This is one of the objectives behind free
zone policy.Despite the difficulty it also is considered as important .This
step also helps to evaluate the effect of buy-back in monetary terms
and its effects on the firm’s own production and marketing activites.It is
quite possible
that the buy-back or counter trade demand is just a bluff ,so that the
seller,seeking to avoid the expenses of buy-back,may offer a major cut-back
in the price.
Find the costumer:In China ,foreign firms have to present themselves and
their technology to several authorities.One has to endlessly repeat the
same things to
different negotiators who suddenly,without any explanation,are replaced by
another team.
Quite often,however,the first team reappears after after some weeks having
„forgotten“
everything ,and one has to start explaining to them again ,from the
beginning.It is,thus
very important for the Westerners to find out which team and who in a
particular team
has the authority to decide.
The engineers and officials asking the most vigilant questions often turn
out to be subor-
dinates with no decision-making authority.Finding the customer is therefore
is quite
difficult.In lobbying stage ,a firm should try to find out who is
responsible for what or
does one has the authority to take the decisions.
Presentation of capabiliteies:In this stage,the firm has to present
itself,its technology
and its products.The presentation material and the presentation itself,very
important.
The material should be professionally prepared and presented.The Chinese
are very
particular about the details and the idea behind presentations is to
convince them
of the quality and trustworthiness of the technology and the firm.It is
advisable to present
all the technical specifications in English as well as local one.Most
Chinese authorities
do not speak English and sometimes only one interpreter is not enough to
get the real contact.Swedish Ericsson provided all the material in English
and Chinese,and spent a lot
of time on correct translation.Having difficulties with duplications there
was noticed that
it is quite difficult to get hold of good ,up to date office equipment and
stationary and
that concerns to many cities,at that.
Build up trust:It is commonly known that the Chinese give sufficient
importance to this trust and to individual relationships.Although the
Chinese always stress on the importance of friendship ,it is quite
diffilcut to develop a social relationship with Chi-
nese.They seldom invite anyone to their houses.In spite of
this,“friendship“ and „trust“
are common aspects of Chinese culture, rather not only in China ,but
throughout Hong
Kong,Singapore,Taiwan and other countries.The impressions and trust that
developed
through the mutual relations and social activities will be return a
hundredfold later.
Страницы: 1, 2
