China’s economic reform program has had many significant effects on competition in the nation. In many industries, came foreign competitors, making “strategic investments” that they believed would lose money for a longer period of time and then return to profitability. At the same time, many Chinese enterprises to the new environment much faster than many observers expected adjusted. Meanwhile, however, a regulatory and administrative system, the considerable uncertainty created links betwe … Read more »

China’s economic reform program has had many significant effects on competition in the nation. In many industries, came foreign competitors, making “strategic investments” that they believed would lose money for a longer period of time and then return to profitability. At the same time, many Chinese enterprises to the new environment much faster than many observers expected adjusted. Meanwhile, however, a regulatory and administrative system that considerable uncertainty connections between government and business, bank loans, the money-losing company kept in business, and a rapidly changing economy and reform will be competing in China, unlike in many business competition created other places. This case offers vignettes of four industries in China, the competition was fierce on the eve of China’s WTO accession, including beer, PCs, steel, and television sets. The class discussion focuses on the nature of competition in the industry and the likely impact of full accession into the WTO on competition. Allows for a discussion of the nature of the uncertainty in the economy and the development of tools to create scenarios for future competition in uncertain situations.
«Hide

from
Michael J. Enright,
Vincent Mak
Source: University of Hong Kong
21 pages.
Publication Date: Jul 26, 2002. Prod #: HKU207-PDF-ENG
Business competition in China: beer, PCs, steel, TV sets HBR case solution

[related_post themes="flat"]