COMPETITION AMONG FOREIGN AND CHINESE AGRO-FOOD ENTERPRISES IN THE PROCESS OF GLOBALIZATION
1999
Wei, Anning | Cacho, Joyce A.
Based on various case studies, this article examines the interaction of foreign investors and local operators in globalization in the agro-food market in China. The study found that to break the limitation of the high-end market and to position mainly in the middle market were critical for international brands to succeed. Asian companies approached the China market as an insider because of cultural proximity. The latter, plus focused management and effective technology, made their operations profitable easily, but also exposed them to the risk of overexpansion. Quality products at affordable prices were the catch-up approach adopted by local players. At the early stage of globalization, winning tactics for local enterprises include imitating and participating in foreign investments, and exploring the markets where foreign investors have no advantages. In the China market, foreign and domestic enterprises were competing, complementing, and collaborating with each other to allow each to achieve its goals. The study analyzes the sophisticated relationships between domestic and foreign players, and provides inputs to strategic discussions of foreign investors and Chinese local enterprises about how to improve their competitive positions.
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