Essay Example on Multinational Companies Reap Benefits in China Market

Marketing strategies are vital aspects that influence organizational performance. Most companies deploy business performance to improve the application of marketing strategies. Massive growth in china attracted a large number of multinational companies. Normally, cheap labor was a key aspect that attracted a large number of these companies. This was a critical aspect that companies were using to reduce the cost of manufacturing. After Panasonic establishment in China, the company faced a challenge of slow growth (Wakayama, Junjiro & Tomofumi 192). Therefore, the management believed it was crucial to engage customers to understand about the market. As such, the company focused on how to enhance its performance to meet customers' particular needs. Through the technique, the company focused on the localizing system, which was a new initiative to understand consumers all over the world. This concept assisted the company to exploit the tension, especially between cross border integration and local adaptation. If the company did not focus on consumers' research, it would fall in market risk. During the time of the establishment, customers in China were not highly recognized. As such, understanding about customers would give the company advantages. Additionally, learning about consumers' lifestyle was another essential aspect the company used to improve its market performance (Wakayama et al., 194). Through the process, the company generated insight and a better understanding of the consumers' products. As a way of embracing technology, consumer research assists the management to understand their preferences based on regions.

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As a technique of improving market performance, companies deploy competitive strategies to outweigh their competitors. Like other companies, Panasonic was required to deploy some competitive advantages to improve its market in China. At first, the company established a cross-business collaboration to improve local performance (Wakayama et al., 194). The collaboration was a good way the company was using to manage market complexity. After the establishment of global consumer marketing, the company effectively disseminated with global scale to enhance its performance in various regions. Additionally, the company established a technique whereby it was funding local branding to promote their products. Through branding, Panasonic was able to promote local products to create a good market outlet. As such, the company created a good relationship between China and Japan. Opening a cross border marketing was a good approach toward strengthening experts in the worldwide operation (Wakayama et al., 194). Reducing the cost of products was another essential competitive advantage the company employed. Since the production cost in China is low, selling products at a low price was an essential way of increasing its sells. Normally, local companies such as Haier were selling products at a low price; hence, the company was required to reduce its products price to improve its market performance.

America is one of the countries with a large number of multination companies. These companies operate in different geographical conditions around the world. Due to high competition from other nations, most of these companies rely on creating competitive strategies to enhance market performance. For instance, companies employ a cost leadership approach to attain the lowest possible production and distribution cost by the economies of scales (Wright 17). These strategies make companies have the power in conducting various production activities at a lower cost. On the other hand, Panasonic relies on low labor cost as a way of reducing production cost. Panasonic uses this as value-seeking customers and a method of penetrating in a new market. Additionally, in companies such as Adidas, the management uses cost focus as their competitive strategy (Wright 34). Through this approach, the company concentrates on some areas such as football where the demand is high to reduce the cost of products. This is an essential strategy the company uses to acquire a wide market in various parts of the world.

Works Cited

Wakayama, Toshiro, Junjiro Shintaku, and Tomofumi Amano. "What Panasonic learned in China." Harvard Business Review 90.12 (2012): 109-113. Retrieved from https://atumidt.dk/sites/default/files/aktiviteter/wakayanma_shintaku_amano_2012_2.pdf.

Wright, Mason. "Strategic Audit of Adidas." (2019). Retrieved from https://digitalcommons.unl.edu/cgi/viewcontent.cgi?article=1160&context=honorstheses.