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The Research on Marketing Management Adjustment of X Co., Ltd. for Western of China

Author: YangBo
Tutor: YinZhongMing
School: Southwestern University of Finance and Economics
Course: Business Administration
Keywords: multinational company west region market in China marketing management
CLC: F426.61
Type: Master's thesis
Year: 2011
Downloads: 21
Quote: 0
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Abstract


With world economy globalization and new economy development, there are more opportunities in the market. It also brings huge changes to the market. Because of the integration of international and demotic market, demotic market is just equal to international market and multinational companies more like to choose localization, which leads to more intensely competition.The Financial Crisis, firstly starting in the USA in Sep.2008, has spread to the whole world. In a short period, the main economies of the world worked out a series of strategy to fight against the crisis. Till now, the world economy has not got rid of the affection of the Financial Crisis and there is still a long way to go for the world economy to recover to the situation before the crisis, but some improvements have been found some countries shows signals that they start to recover from the crisis. In this situation, a lot of multinational companies affected in the crisis begin to search safe place all over the world in order to reduce the impact from the Financial Crisis. It seems China is the best selection. Many multinational companies invest more to its branches in China, although their business environment is still tough. All the factors increase the competition in China market.In order to take advantage in the competition in China market, multinational companies must understand market in China, dig out potential opportunities and design strategy according to China market. But China is a large country and economy level in each zone is quite different with others. If the same business strategy is followed by all the different zones, the performance of some of the zones must be not as good as what the company expects to achieve. Especially in the western part of China, the strategy adapt well in east region may be difficult to completely fit the characteristics of west regional market. So the company should make some adjustments to the strategy for west region market.This paper selects X Co., Ltd., a multinational company in electricity distribution industry, to do the research. X Co., Ltd. is not a leader of this industry, but only in a position of second rank brands in the market. Not only compete with top 3 electricity distribution brands but also compete with a lot of China local brands, X Co., Ltd. facing big challenges. In order to seize the market share, X Co., Ltd. wants to break through from current poor performance in west region. Therefore, it is quite necessary for the management of X Co., Ltd. to adjust the strategy in west region.This paper is divided into 3 parts:The first part is about the trends of electricity distribution industry. It includes international and domestic industry needs and the market position of X Co., Ltd. Because of globalization and the huge Financial Crisis, China is one of the best choices for multinational companies to reduce the negative impacts. The competition between electricity distribution equipment producers in China market is more and more intense. As the forefront of the second rank brands, X Co., Ltd. needs to compete with both international and domestic brands. In order to meet the growth target, X Co., Ltd. picks western China market since there are many potential opportunities. In part 2, it is a briefing of China western economy and current marketing management practice of X Co., Ltd. The practice demonstrates the unique characteristics of west region market. Because of its location and economy situation, western market is not as good as other regions:the quantity of big projects is small and project owners prefer to choose products with lower position. At the same time, the central government of China published a series of stimulate policies for western market which created many project chances. Part 3 is about the analysis to the west region marketing management of X Co., Ltd. basing on Philip Kotler’s theoretical framework. In order to meet the commitment to X Co., Ltd. high-level management, some recommendations for adjustments are raised.

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