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Case Studies on MNCs in China - Vol. I

Edited by : Dr. Nagendra V Chowdary
ISBN : 81-314-1211-8
Price: $50  ( INR)
192 pages( Hardcover edition )

Snapshot of the casebook

If MNCs have to thank someone for unleashing huge potential for their businesses, it would definitely be Deng Xiaoping. What China today is definitely was not the China that world knew in 1970s. Deng's policies had immense impact abroad. "It is time to prosper. China has been poor a thousand years," he said. However, his exhortation– "to get rich is glorious" – did more than just unleash economic drive. It overturned the millennia of ordinary Chinese setting aside their personal welfare for the emperor or the state. China succeeded in moving from a Maoist command economy to a market economy. It introduced market reforms in the early 1980s. These reforms included increasingly decreasing role of government, opening up many sectors through liberalisation and globalisation, relaxing market entry norms for MNCs, etc. And these reforms meant a huge business opportunity for all the companies across the world and more so for MNCs grappled with growth dilemmas.

Suddenly, China started featuring in company agendas. It became an important investment destination. Every MNC wanted to be there for the party. Many reciprocated to the red carpet welcome awaiting them. First mover advantage was thought to be an unassailable advantage. However, initial success was hard to come by. They realised they are fishing in troubled waters. Some learnt from their mistakes while many burnt their coffers.

Experience Curve? Learning Curve? One sure way of minimising mistakes is to learn from others’ mistakes. All the available evidence (captured through case studies featured in this book Case Studies on MNCs in China – Vol. I ) highlights how difficult it is to navigate (negotiate!) in one of most enterprising and evolving markets in the world. Not because these companies lack capabilities but because of the ever-changing customers’ demands and complex business terrain. These crisp case studies underscore either what to do or what not to do while conducting business in China. It’s not business as usual!

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