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    A US company that does not enter the Chinese market risks competition both in China and eventually in its home market in the US. Imitators in China could emerge to copy the US company's products or services, and some of these imitators may grow substantially in China. They may then enter the US market and compete against the original US company not just in China but also in its home market. Therefore, even if a company is not interested in the Chinese market currently, it should consider entering China to pre-empt competition from imitators both in China and in the future in the US market as well.

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    Advance Corporate Strategy

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    A US company that does not enter the Chinese market risks competition both in China and eventually in its home market in the US. Imitators in China could emerge to copy the US company's products or services, and some of these imitators may grow substantially in China. They may then enter the US market and compete against the original US company not just in China but also in its home market. Therefore, even if a company is not interested in the Chinese market currently, it should consider entering China to pre-empt competition from imitators both in China and in the future in the US market as well.

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    © All Rights Reserved
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    8 views1 page

    Advance Corporate Strategy

    Uploaded by

    Passionate_to_Learn
    A US company that does not enter the Chinese market risks competition both in China and eventually in its home market in the US. Imitators in China could emerge to copy the US company's products or services, and some of these imitators may grow substantially in China. They may then enter the US market and compete against the original US company not just in China but also in its home market. Therefore, even if a company is not interested in the Chinese market currently, it should consider entering China to pre-empt competition from imitators both in China and in the future in the US market as well.

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    Advanced Corporate Strategy

    ST104x

    Pre-empt competitors and imitators

    Sometimes, companies have to go global just to prevent future competition. Let us say there
    is a US company that, for whatever reason, is not interested in the Chinese market and hasn’t
    entered China.

    This gives scope for the emergence of imitators in China and over time some of these imitators
    may become big and then enter the US market. Thus, even when a firm is not interested in
    the Chinese market, it has to enter China to prevent competition not just in China but also in
    its home market.

    © All Rights Reserved, Indian Institute of Management Bangalore

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