China ready to join the World Trade Organization in 2001, many multinational corporations to invest billions in new operations there. But their ambitious growth plans should be viewed with caution. Experienced multinationals have long been aware of the problems, summed up saying that in China "everything is possible but nothing is easy." But few predicted the greatest obstacle to success: the emergence of strong competition from local Chinese players. Research sponsors in the last five years shows that while market dominance local champions is not universal, it is becoming more frequent. Multinational corporations must recognize the fact that the competitive advantages that are potentially available to them in superior technology, products and systems will become dull if they do not build a strong local competence. In particular, multinational corporations must show a new determination to master the complexities of distribution, sales and service in medium-sized cities of China and the rural hinterland and learn to adapt products, processes and marketing messages, is more sensitive to the peculiarities of the Chinese market. "Hide
by Peter J. Williamson, Ming Zeng Source: MIT Sloan Management Review 9 pages. Publication Date: July 1, 2004. Prod. #: SMR149-PDF-ENG
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