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How Do International Marketing Strategies Help Firms Achieve Competitive Advantage: German companies being successful in China

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Downloads to date: N/A | Words: 12225 | Submitted: 03-Jan-2012
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How Do International Marketing Strategies Help Firms Achieve Competitive Advantage: German companies being successful in China

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How Do International Marketing Strategies Help Firms Achieve Competitive
Advantage: German companies being successful in China
Table of Contents

Introduction 3

Literature review 4

Methodology 21

Finding 28

The commercial relationship of two countries – Siemens Ltd 31

Summary and conclusion 34

Limitations 35

Recommendations 36









Introduction
One of the most common phenomena regarding the modern commercial activity is the
relocation of companies – even of well known ones – and their establishment in
countries which are by far different from the local ones (that of the state of origin). On
the other hand, the turbulences of the financial area impose the design and the
application of an effective strategy in order for a business to manage to survey. In this
context, China has been presented mostly in the last two decades as a favourite place for
a variety of business activities offering the advantage of low wages combining with
general low operating costs. However, the specific business decision, i.e. the relocation
to the Chinese Market has also been criticized as having elements of risk regarding the
final profit of the company that proceeds to such an initiative. Under these conditions
the whole net of corporate activities in the specific country has been examined both for
their design and for their feasibility to operate.
One of the countries that have suffered financially from this business activity is
Germany. The specific country has a significant number of companies which decided to
move to China (totally or only partially) in order to avoid the costs that are related both
the employees’ compensation and with the tax obligations in their home country. The
specific business decision has been characterized either as a success or as a failure in
accordance with the financial results that have produced during the operation of a
German company in China. However, sometimes there could not be specific ...

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