BUSS4 China – Key Themes
The key words in the research bullets indicate
this theme is all about strategic choice!
Rewards
Risks
Opportunities
Threats
Success
Failure
Advantages
Disadvantages
A Danger of Getting Lost in China
(…and in the Research Theme)
Strategy
is
CHOICE
Strategy always boils down to
2 questions
Where to PLAY?
• Target markets
• Customer needs
• Size of the prize
How to WIN?
• Value proposition that distinguishes a business
in eyes of target customers
• Capabilities that enable delivery of proposition
A chance to use two classic models to
explore China strategy
Porter’s model addresses the two
strategy questions!
How to Win?
Where to Play?
Underlying Issues in the China Research
Theme
• How important is China to a business looking
for growth?
• Can the potential rewards justify the substantial
risks?
• What are the alternatives if a business needs
profitable growth?
• Are other emerging markets a better bet?
• Is it possible to compete effectively and fairly in
China?
• Is it too late to succeed in China, or can you
learn from those who tried and failed?
What businesses outside China need to consider when
looking to trade with or do business with China
Importance of international expansion as a source of
growth
Short v long-term investment & planning
Evaluating the risks & rewards when short of knowledge
Which method of market entry is consistent with the
corporate objectives and attitude to risk?
Rapid change in a hostile external environment