Traditional ways of strategic thinking – the only truth?

• Main Author: Storsten, Emelie
• Format: Others
• Language: English
• Published: Uppsala universitet, Företagsekonomiska institutionen 2011
• Subjects: Strategy; SCP-model; Emerging markets; Chinese market; Guanxi; Institutional voids; Business studies; Företagsekonomi
• Online Access: http://urn.kb.se/resolve?urn=urn:nbn:se:uu:diva-155619

The classical approach to strategy defines strategy as a process of planned calculation and analysis to design long-term advantages. The Structure-Conduct-Performance (SCP) model argues that firms perform and develop strategies based on market structures. These approaches have been seen as the “norm” but are today criticised as outdated since they do not fully suit new emerging markets. The aim of the study is to investigate whether these approaches need modifications for emerging markets and if unique factors need to be emphasized when developing sale strategies for the Chinese market.  The empirical findings are based on two Scandinavian firms with long experience in China. A qualitative exploratory research design is conducted trough the study. As a conclusion a guideline of vital factors for the Chinese market is provided: market knowledge, political and social system, relationships and branding. The knowledge of these factors can help other companies to master the complex environment of the Chinese market.