It Industry Into China Essay

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1. Introduction
With the economic globalization, More and more multinational enterprises expanded their business abroad by using different market entry strategy. As Lechner and Boli (2012) claimed that the world-economic trends and cycles of the past two decades have made it increasingly apparent that the production and distribution of goods take place in complex global networks that tie together groups, organizations, and regions. In this paper, we focus on the IT Industry which is more and more popular in China, and then analyzed four giant IT guys: Apple, IBM, Dell and Samsung. They entered Chinese market during the different period. Even though some of their businesses are similar, their growth path and the strategies they used are
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Among these are competitive strategy, political and social ideology, institutional, and cultural barriers that are difficult for Western firms to overcome. (Yaprak, 2012).
In sum, the key to effective entry into emerging markets appears to lie in overcoming both the soft entry barriers through advancing managerial understanding of the institutional contexts of these markets, and surmounting the hard entry barriers, both structural, such as cost, capital, and product differentiation advantages established by the incumbents, and strategic, such as those that are purposefully erected by the incumbents. (Yaprak, 2012).
3. Case study
Case analysis #2: Apple in China Background
Apple Inc. is an American multinational corporation, which designs, manufactures and sells personal computers, consumer electronics and software, and provides related services. The company has experienced a tremendous growth from 2001 when it has introduced its iPod mp3 player (Jurevicius, 2013). Apple Inc. is considered to be the most successful electronics company in the world.
Internal environment analysis – SWOT analysis
Strength (S)
- Customer loyalty combined with expanding closed ecosystem.
Apple has a full range of apps, software and products that are linked and support with each other. And Apple has relatively high customer loyalty, which increases due to Apple’s closed ecosystem.
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