Effective globalization requires strategic planning into unique market differences. Here's why a Global Executive MBA is ideal preparation.
China is one of the fastest growing and most important economies in the world, becoming an increasingly popular area for global businesses to target expansion initiatives. In fact, 2015 saw China overtake the United States as the world's largest recipient of foreign investment.
China's enormous population and strict government regulations on foreign investment mean that conducting business in this country requires unique approaches. It also means that for innovation-hungry business leaders, there are strategies that can be learned from the Chinese environment which won't be found anywhere else.
Curious about what business strategies can be learned from China? Here are three examples worth noting.
Chinese businesses have a reputation for taking good ideas and then beating the original company in the marketplace. For example, Chinese search engine Baidu is widely thought to have copied Google's approach to web search and advertising in the early 2000s, cementing itself in the industry before Google could arrive in China. There are also reports that physical products demoed on the crowdfunding website Kickstarter are sometimes outraced to the world market by cheaper Chinese copycat products that offer the same functionality.
You can apply a similar "first or better" mentality by applying the cutting-edge knowledge you develop during your EMBA program at WU Executive Academy. Business leaders are continuously seeking ways to improve upon what's currently available in the market, deriving competitive advantage by offering a better price, quality, or delivery time. Companies in China are known for their innovative approaches to making ideas commercially viable, such as through component sourcing or accelerating speed to market.
In China, many companies achieve economies of scale by producing very specific products. In Yiwu's "Christmas Village", for example, one factory may specialize entirely in creating snowflake decorations, while another may produce only plastic Santa Claus figurines. This specialization allows for low production costs and rapid output of goods, which are sold in enormous quantities to importers around the world for impressive profits.
In global executive MBA courses, you'll learn operations management skills from leading academic and professional experts that can help you instill a similar efficiency in your business. A profitable niche can be found by focusing on offering a limited number of products or features, delivering them at a consistent level of quality, and improving production efficiencies.
Many international businesses are eager to enter China, whether it is to take advantage of its low labour costs and efficient supply chains to produce goods inexpensively, or to gain access to a market of over 1.3 billion people. However, government approval is sometimes conditional upon businesses sharing technology or knowledge with a Chinese company. This is one example of the kind of potential dilemmas faced by business leaders when expanding into unfamiliar markets.
Your MBA training in competitive analysis, negotiation, and establishing partnerships can help you consider the pros and cons of all kinds of business arrangements, and negotiate optimal outcomes for your own company. Studying at Lingnan (University) College, one of China's leading higher education institutions, and visiting famous companies during Global Executive MBA's international residency in Guangzhou provides powerful opportunities to learn directly about the unique characteristics and challenges of the Asian market.
Interested in pursuing studies in Executive MBA courses?
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