Made in China proper international road trip

Made in China proper international road trip

What is the success of globalization? Globalization is a business success depends on its global share of the profit distribution. The purpose of business is profitable, if not globalization a positive impact on corporate profits, or no increase in the global share of the profit distribution, then it is difficult as the success of globalization. This means that the business should have a leading global scale, strong global brand, and has the world's leading technology.

In this context, how the China manufacturers out of a suitable path of internationalization? Low cost and differentiation from the start in both directions .

Low-cost strategy for global scale

First to emphasize that the low-cost strategy is under the same conditions with low-cost competitors, and not sacrifice the quality of products low cost. "Made in China"If you do not increase the quality of the blind pursuit of low cost, companies can only be locked in the most low-end value chain, can not establish a good brand.

Second, the low-cost strategy to reduce global scale factor dependent on the cost price, that is, the price of raw materials and spare parts. This means that in many cases, integration of the industry worldwide. When a Chinese enterprise has the world after the scale advantages, it can make better use of global resources, including China, to reduce costs. This is why take advantage of international market share in the company usually has a lower cost.

Third, Chinese enterprises should also be modified by innovations in the entire operating system, lower overall costs. These include centralized purchasing, improve material utilization and yield, reduce the use of international financial instruments, financing costs, reduce manufacturing costs through information technology and logistics costs. In fact, through process optimization and IT technology, enterprises can all the links in the value chain to reduce costs.

In the specific operation, there are two roads are suitable for Chinese manufacturing enterprises.

About author:

Chineeren is the webmaster of clsc.cn which only the suppliers of high quality can be listed in the China manufacturer directory, go and find your best suppliers now.

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