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China-Based Company Strength

China-Based Company StrengthInternational business opportunity is alive and well in many Chinese businesses from manufacturing process technology to supplier consolidation.  It is also true from logistics to customer service.  China has built strong teams due to the influence of the Western world and the increase of China-based companies.  They have often used a multinational-trained staff.  They even hire non-Chinese with international experience into senior positions.  Hiring non-Chinese employees improves their foreign relations and eases negotiations when working with foreign-owned businesses.

In both formal and informal situations, Chinese companies enjoy strong support for their activities.  This has made them more competitive in bid situations for manufacturing of products, and given them an edge in key state owned industries.

In the past few years, the business environment has now become tougher for all businesses.  In many ways, Chinese companies are better able to manage the transition from lower margins and leaner operations than other countries.  They have a much lower overhead to begin with.  The business world has learned not to be surprised by Chinese companies.  They are good at changing the direction they take, and making rapid changes in their organizations.   The changes the Chinese make are successful, even though they may not be as well researched, or may be less sophisticated than those of Western businesses.  The Chinese work at a ridiculously rapid rate due to the whims of the Chinese consumer and the B2B market changes.   Sometimes, all that’s needed to gain market shares, is to put together a strategy that is well conceived.   Western businesses require strategic plans, but most mid-sized companies in China do not have one.  They do not have budgets or sales and marketing plans either.  Their way of conducting business, while being an easier method of conducting business for them,  often makes understanding their approach challenging for Westerners who they do business with.

There used to be a competitive, straightforward advantage for foreign businesses.   All they had to do was persuade people that the quality advantage was worth paying for, but that is now a thing of the past.  More and more businesses are operating from China, and Chinese companies now have a huge market share grab.   Now the Chinese companies are producing more and more quality merchandise at lower prices than foreign companies.  It is often impossible for other companies to compete.  Import/export to China has become a more and more accepted practice by foreign business.  At one time, China’s pharmaceutical companies worked on trials and kept results for other countries.  Today, because of the improvements in Chinese business, they usually are working on drug discovery and the improvement of manufacturing practices.

Understand the strategies of your Chinese competitors may be very difficult at times.  You may also find it difficult to do business with someone on the other side of the world.  Current challenges for all businesses, however, have led them to China-based companies as a method of survival.

 

 
 
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