Effective Strategies Provide Competitive for multinational
Competitive advantage refers to the advantage that an enterprise or country can bring profit or benefit in some places than other enterprises or countries. This definition has two understanding. The first one is that companies or countries use a variety of business methods means to obtain lower prices to maximize profits, but this is limited to large enterprises. Maintaining a competitive advantage for large companies is a very important business goal. Second, compared with competitors, enterprises or countries have the advantages of sustainable development; for example: superior resources (social resources, human resources, natural resources, financial resources, etc.) advanced operating models (management models, business models, innovation, etc.), products and services that are more suitable for market demand(high value, superior price, uniqueness, etc). For example, the famous Business consultancy China – CBC Business Consulting which is doing Business Consulting China. It provides China Marketing Entry Service and China business setup service and has various of superior resources, advanced operating models. These are its competitive advantage which results that it has already survive for more than twenty years.
International business enterprises want to win in the competition and maintain prosperity, is nothing more than to achieve “know the enemy, a hundred battles,” but can apply the relevant theory to practice is extremely rare. Porter put forward the method of “knowing oneself and know the enemy” in the research of market strategy. Not only to understand the external environment; industrial environment, industrial development and change, industrial clusters and competitive environment; but also to be familiar with the situation within the enterprise as a whole and inevitably involves the coordination of various activities. In addition, it also includes the coordination between products and the impact of activity cost on enterprises.
As an international enterprise, there are two Business focus in China Market entry, first of all, it is necessary to have a detailed understanding of the economic activities and industrial development in the Chinese market. In the emerging markets, new industrial segments will constantly emerge. Therefore, before entering China, foreign enterprises need to conduct continuous industrial segmentation through China Business Consultants, so as to identify the new industry segments earlier than their competitors. Second, there are no fixed rules for business competition in emerging markets. In an environment without rules of the game, international business must always be vigilant, pay close attention to the dynamics of competitors, be highly sensitive to the new trends of technological development, and quickly establish all the rules of competition so that enterprises can prosper on the basis of following these principles.