Preparing for China's next great leap

doi:10.1108/10878570710717281

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ISSN: 1087-8572
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Preparing for China's next great leap

Document Information:
Title:	Preparing for China's next great leap
Author(s):	Orit Gadiesh, (Chairman of Bain & Company.), Paul di Paola, (Shanghai-based Paul di Paola is managing director of Bain China.), Luca Caruso, (Luca Caruso, based in Stockholm, co-directs Bain's European Industrial Practice.), Oi Chung Leung, (Bain partner based in Shanghai.)
Citation:	Orit Gadiesh, Paul di Paola, Luca Caruso, Oi Chung Leung, (2007) "Preparing for China's next great leap", Strategy & Leadership, Vol. 35 Iss: 1, pp.43 - 46
Keywords:	China, Multinational companies, Organizational buying behaviour
Article type:	Viewpoint
DOI:	10.1108/10878570710717281 (Permanent URL)
Publisher:	Emerald Group Publishing Limited
Abstract:	Purpose – Alert global firms that China plans to become an incubator for top companies rather than simply a low-cost manufacturing base. Design/methodology/approach – Outline the strategies for MNCs to penetrate China's expanding market and defend their global position. Findings – MNCs have figured out the six keys to success: differentiate your products, bring production costs down in line with local cost structures, design offerings for local tastes, create smart partnerships, develop close government relationships and hire strong, “China-fluent” management, both local and expatriate. Practical implications – Actions for MNCs to take: Develop Chinese toehold operations into self-standing and profitable units. Dramatically reset the standards for cost competitiveness. Protect the value segments in your core markets. Treat human resource management as a strategic global function. Accelerate and globalize R&D. Ensure that each business is delivering what it promises to core customers. Originality/value – Assesses the strategic strengths and weakness of MNCs and potential Chinese rivals.