Research on the Key Success Factors (KFS) of foreign discount stores in Mainland China

• Main Authors: CHIH-WEI LIN, 林智偉
• Other Authors: CHIH-WEN HUANG
• Format: Others
• Language: zh-TW
• Published: 2004
• Online Access: http://ndltd.ncl.edu.tw/handle/16522083036259831592

碩士 === 淡江大學 === 國際貿易學系碩士在職專班 === 92 === Facing the fiercest competition in the 21st century, transnational businesses have to cope with the trend of global economic union and the abrupt changes of the industrial environment so as to further their competitive advantages and increase their market share. In this connection, how to profit from the most unpredictable commercial environment has become the top priority for the businesses. At the time that Taiwan faces the irreversible globalization trend, her businesses have to incorporate the internationalization process into their strategies so as to enhance their competitiveness and play an active role in the global market. Mainland China is the seventh largest economy and the ninth largest trading nation in the world. With a population more than 1.2 billion, Mainland China is the second largest investment market in the world, next only to the Unites States. For example, 50% of the world’s 500 largest businesses have invested in Mainland China and a number of worldwide prominent retailers had established their businesses in Mainland China since 1995. They compete with one another ceaselessly. Attracted by the tremendous business opportunities, the top 3 retailers – United States’ WallMart, France’s Carefour, and Germany’s Macron are competing with one another to increase their market share in Mainland China.This study has concluded the key points as follows:1.Foreign discount stores’ motives are consistent with the progressive motives – pursuance of interest, product uniqueness, technological advantages, exclusively possessed information, managers’ enthusiasm, taxation benefits, and scale economy stated in the theorems presented by Czinkota Rivoli & Ronkainen (1992), together with pull-market orientation:A. The local market has grown to such a size that it requires outlets.B. To acquire advanced market advantages.2.If the leading foreign businesses enter Mainland China as joint ventures, their negotiation capabilities with local government authorities depends on the public relations between such businesses and local government authorities – the higher the public relations, the better the negotiation capabilities, and vice versa.3.The chain stores’ motives are consistent with the opinions of Mainland China scholars (Jun Jan, Jiang Lee, 1994):A. Chain stores have become retail businesses in the contemporary business environment and their advantages are obviously non-substitutable.B. Shareholder structure is the top priority for the chain stores and, in this connection, internal management is indispensable for share administration.C. Commercial activities have to be standardized and unified to facilitate price competition so as to enhance market competitiveness.D. To cherish goodwill and reject counterfeited products and inferior products out of the national commercial market, at the same time, state-owned businesses compete in the market with top quality products.