Welcome to Scribd. Sign in or start your free trial to enjoy unlimited e-books, audiobooks & documents.Find out more
Download
Standard view
Full view
of .
Look up keyword
Like this
8Activity
0 of .
Results for:
No results containing your search query
P. 1
china mass markets

china mass markets

Ratings:

4.5

(1)
|Views: 131|Likes:
Published by allgu
Foreign companies must alter their business models and operations to
tap China’s rapidly growing mass markets where scale matters and price is
king. Prosperity outside of major coastal cities, an evolving middle class
and fierce competition will drive more companies to develop innovative,
low-cost business models to reach new markets and customers across
diverse regions of China. Companies will need to transform key areas
of their businesses – including sales channels, distribution, R&D,
procurement and human resources – to capture this historic opportunity
Foreign companies must alter their business models and operations to
tap China’s rapidly growing mass markets where scale matters and price is
king. Prosperity outside of major coastal cities, an evolving middle class
and fierce competition will drive more companies to develop innovative,
low-cost business models to reach new markets and customers across
diverse regions of China. Companies will need to transform key areas
of their businesses – including sales channels, distribution, R&D,
procurement and human resources – to capture this historic opportunity

More info:

Published by: allgu on Jul 22, 2008
Copyright:Attribution Non-commercial

Availability:

Read on Scribd mobile: iPhone, iPad and Android.
download as PDF, TXT or read online from Scribd
See more
See less

07/24/2013

pdf

text

original

 
Winning inChina’s massmarkets
New business models,new operations orproitable growth
IBM Global Business Services
Strategy and Change
IBM Institute for Business Value 
Survey in cooperation with 
 
IBM Institute for Business Value
IBM Global Business Services, through the IBM Institute or Business Value,develops act-based strategic insights or senior business executives around criticalindustry-speciic and cross-industry issues. This executive brie is based on anin-depth study by the Institute’s research team. It is part o an ongoing commitmentby IBM Global Business Services to provide analysis and viewpoints that helpcompanies realize business value. You may contact the authors or send an e-mail toibvchina@cn.ibm.com or more inormation.
 
In recent years, most established foreignmultinational companies (MNCs) haveenjoyed strong revenue growth and profit-ability by riding on the back of China’sspectacular economic growth. China alreadycontributes on average nearly 10 percent ofthe global revenues of the 180 MNCs in our2006 survey. At the same time, in 2006 theAmerican Chamber of Commerce in Shanghaireported 64 percent of its member companieswere profitable and 65 percent had profitlevels in China equal to or higher than in othercountries.
1
But in China’s rapidly changing environment,recent success is no guarantee for the future.Industrial and consumer products companiesalike will have to reevaluate their businessmodels and operations to sustain rapidrevenue growth and profits.In industries ranging from automobiles toelectronics, lower-end product segmentsoften account for the largest portion of thetotal market and these segments are typicallygrowing the fastest. MNCs counting on Chinafor strong revenue and profit growth – or simplyhoping to maintain market share – will neednew approaches to win in price-sensitive massmarkets while preserving their market leader-ship in higher-margin, premium-end marketsegments.How can companies capture the China massmarket opportunity profitably? What are thebusiness model implications and how willchanges impact their China and global opera-tions?
Foreign companies must alter their business models and operations to tap China’s rapidly growing mass markets where scale matters and price is king. Prosperity outside o major coastal cities, an evolving middle clasand ierce competition will drive more companies to develop innovative,low-cost business models to reach new markets and customers across diverse regions o China. Companies will need to transorm key areas o their businesses – including sales channels, distribution, R&D,procurement and human resources – to capture this historic opportunity.
Winning in China’s mass markets
Winning in China's mass markets 
New business models, new operations for profitable growth
By Alan Beebe 

Activity (8)

You've already reviewed this. Edit your review.
1 thousand reads
1 thousand reads
1 hundred reads
rms_erick liked this
rabiaarshad liked this
Sisay Amsalu liked this
alypl liked this

You're Reading a Free Preview

Download
scribd
/*********** DO NOT ALTER ANYTHING BELOW THIS LINE ! ************/ var s_code=s.t();if(s_code)document.write(s_code)//-->