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A Comparison Study on Localization Strategy and Mode of Multinational Enterprise in China

Author: LiuZuoKun
Tutor: WangBo
School: Tianjin University
Course: Business Administration
Keywords: Multinational Enterprise Localization Strategy Localization Mode ABB SIEMENS
CLC: F426
Type: Master's thesis
Year: 2012
Downloads: 359
Quote: 0
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Abstract


The economic globalization has promoted multinational enterprise international investment and transferred their key market, and then carried out localization actively. Localization is the main trend of multinational enterprise development in overseas, and also is their necessary activity and core strategy With China’s sustained and rapid economic development and the continuous improvement of investment environment, multinational enterprise also actively involved in China, launched a large-scale, systematic investment, China has become the world’s most lively investment area. Entry the new century, the multination enterprise has carried into practice localization on manufacture, marketing, human resources, R&D and other aspects in China, The thesis make the benchmark and analysis of the localization activity in China between ABB and SIEMENS.Study the localization activity of ABB and SIEMENS in China, depended on the actually action and data, compare the difference and analyzed the hidden reason. Issue the key reason of that the activity and step is alike but the effect has big difference is the“localization value”of multination enterprise. The main idea is: Promote localization voluntarily; As viewed from Amphitryon do the localization work; With open and innovated thinking for localization strategy; With coequally degree make localization measure; Done the localization activity with double win. Give the new view and new way to study and comprehend the localization of multination enterprise.In the first, paper introduced the elementary theory about localization strategy and international investment related to localization strategy. In the mainly part of paper introduce the history, marketing at present and the localization strategy & mode of ABB and SIEMENS. And then integrate the reason and action that production localization marketing localization R&D localization human resource localization. After compare and analyze the factors, thus found out the deep reason of difference localization is base on: company history, management structure, company culture, human resource ingredient, company values. Based on the conclusion,the final part of the thesis will provide the detail suggestions for Chinese firms which are on their way to starting the international investment and localization business.

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