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Options for Resistance Strategies of Local Chinese Companies Against Foreign Competition in the CCGM --- a Case Study Approach

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Options for Resistance Strategies of Local Chinese Companies Against Foreign Competition in the CCGM --- a Case Study Approach OPTIONS FOR RESISTANCE STRATEGIES OF LOCAL CHINESE COMPANIES AGAINST FOREIGN COMPETITION IN THE CHINESE CONSUMER GOODS MARKET Lin Zhang China Contents CONTENTS List of Figures...................................................................................................... VI List of Tables ..................................................................................................... VIII List of Abbreviations............................................................................................ X 1 Introduction ..................................................................................................... 1 1.1 Prevalent Problems for Local Chinese Companies .................................................... 1 1.2 Research Aim ................................................................................................................. 4 1.3 Structure of the Dissertation......................................................................................... 7 2 Theoretical Framework................................................................................... 9 2.1 Strategy and Strategic Management............................................................................ 9 2.1.1 The Concept of Strategy ...................................................................................... 10 2.1.1.1 Definition of Strategy ............................................................................. 10 2.1.1.2 Strategy Typologies ................................................................................ 13 2.1.1.2.1 Corporate Strategies ................................................................. 16 2.1.1.2.1.1 Growth Strategy.............................................................. 17 2.1.1.2.1.1.1 Product-Market-Strategies.................................... 17 2.1.1.2.1.1.2 Local, National, International and Global Strategies.............................................................. 20 2.1.1.2.1.1.3 Autonomy, Cooperation, and Integration Strategies.............................................................. 22 2.1.1.2.1.2 Stabilization Strategy...................................................... 29 2.1.1.2.1.3 Retrenchment Strategy ................................................... 29 2.1.1.2.2 Business Strategies ................................................................... 31 2.1.1.2.3 Functional Strategies ................................................................ 33 2.1.2 Strategic Management.......................................................................................... 36 2.1.2.1 Definitions of Strategic Management..................................................... 36 2.1.2.2 Strategic Management Process ............................................................... 37 2.1.2.2.1 Strategic Planning..................................................................... 38 2.1.2.2.2 Strategy Implementation........................................................... 39 2.1.2.2.3 Strategic Evaluation and Control.............................................. 41 2.1.3 The Significance of Strategic Environment Analysis in Strategy Planning......... 43 2.1.3.1 External Environment Analysis .............................................................. 45 2.1.3.1.1 Macroenvironment ................................................................... 45 2.1.3.1.1.1 Political/Legal Environment........................................... 46 2.1.3.1.1.2 Economic Environment .................................................. 46 2.1.3.1.1.3 Sociocultural Environment............................................. 47 2.1.3.1.1.4 Technological Environment............................................ 48 2.1.3.1.2 Microenvironment .................................................................... 48 2.1.3.1.2.1 Industry Analysis............................................................ 48 I Contents 2.1.3.1.2.2 Competitor Analysis ....................................................... 51 2.1.3.1.2.3 Customer Analysis.......................................................... 53 2.1.3.1.2.4 Distribution Analysis...................................................... 55 2.1.3.2 Internal Environment Analysis ............................................................... 58 2.2 Resistance Strategies ................................................................................................... 60 2.2.1 Research Context ................................................................................................. 60 2.2.2 Definition and Research Propositions.................................................................. 63 2.2.3 Literature Review................................................................................................. 66 2.2.3.1 Miles and Snow’s Strategy Typology ..................................................... 66 2.2.3.2 Meffert’s Strategy Typology ................................................................... 70 2.2.3.3 Kuester, Homburg, Robertson and Schaefer’s Strategy Typology ......... 76 2.2.3.4 Raffée and Segler’s Strategy Typology .................................................. 80 2.2.3.5 Gorynia and Wolniak’s Strategy Typology............................................. 83 2.2.3.6 Dawar and Frost’s Strategy Typology..................................................... 87 2.2.3.7 Analysis of the Existing Approaches ...................................................... 87 2.2.3.7.1 Summary................................................................................... 87 2.2.3.7.2 A New Classification and its Analysis...................................... 89 2.2.3.7.3 Contribution.............................................................................. 93 2.2.4 Alternative Resistance Strategies......................................................................... 93 2.2.4.1 Two Required Parameters....................................................................... 94 2.2.4.2 Options of Resistance Strategies without Strategic Alliances ................ 95 2.2.4.2.1 Defender ................................................................................... 96 2.2.4.2.2 Extender.................................................................................... 99 2.2.4.2.3 Dodger .................................................................................... 100 2.2.4.2.4 Contender ............................................................................... 103 2.2.4.3 Options of Resistance Strategies with Strategic Alliances ................... 105 2.2.4.2.1 Defender ................................................................................. 108 2.2.4.2.2 Dodger .................................................................................... 110 2.2.4.2.3 Extender.................................................................................. 110 2.2.4.2.4 Contender ............................................................................... 111 2.2.4.4 Summary............................................................................................... 112 3 Analyzing the Marketing Environment of Domestic Actors in the Chinese Consumer Goods Market ............................................................................116 3.1 Chinese Consumer Goods Companies..................................................................... 116 3.1.1 Consumer Goods and Consumer Goods Companies......................................... 116 3.1.1.1 Definition and Typology of Consumer Goods...................................... 116 3.1.1.2 Consumer Goods Companies in the Context of Globalization............. 118 3.1.2 Types of Chinese Consumer Goods Companies................................................ 120 3.1.2.1 Chinese State-Owned Enterprises......................................................... 121 3.1.2.2 Chinese Township and Village Enterprises........................................... 124 3.1.2.3 Chinese Private-Owned Enterprises ..................................................... 125 3.1.3 Major Chinese Consumer Goods Companies.................................................... 127 3.2 Major Macroenvironmental Forces ......................................................................... 129 II Contents 3.2.1 Political/Legal Environment .............................................................................. 130 3.2.1.1 Political Background and Current Situation ......................................... 130 3.2.1.2 Legal and Regulatory Environment...................................................... 133 3.2.2 Economic Environment ..................................................................................... 136 3.2.2.1The History of Economic System.......................................................... 137 3.2.2.2 Present Economic Performances .......................................................... 143 3.2.2.2.1 Foreign Trade.......................................................................... 143 3.2.2.2.2 Foreign Direct Investment and Overseas Direct Investment.. 145 3.2.2.2.2.1 Foreign Direct Investment............................................ 145 3.2.2.2.2.2 Overseas Direct Investment.......................................... 147 3.2.2.2.3 Gross Domestic Product, Investment and Consumption........ 149 3.2.2.3 Economic Challenges ........................................................................... 152 3.2.2.3.1 Imbalance ............................................................................... 153 3.2.2.3.2 Banking
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