Analysis of Chunlan multinational operation

Essay by Sadrina February 2003

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Multinational operation is a complicated project. It involves the combination of global strategy, financial control, international marketing, HR internationalization and characteristic company culture, etc. Chunlan did some beneficial trials in the multinational operation and has gained good results. Its experience and trials is worth studying.

1>. Global operation concept is the important guarantee for Chunlan success. Global operation concept is to execute strategic thinking from the global perspective, to view the development and movement of production, investment, trade and technology in a broader way, and to enhance sales of products in a more extensive space. In its initial stage, Chunlan designed its long-term plan to create well-known domestic and even international brands. "The space for Chunlan to survive is the whole world." Guided by the global operation concept, Chunlan designed and implemented its internationalization strategy and developed multinational operation in a systematic way. First of all, Chunlan studied the trend of world electric appliance industry and tracked technical development of this industry.

It studied some major competitors: such as Siemens, Panasonic, Ariston and investigated the demand on the global market for electric appliance. Based on the above activities, Chunlan determined its aim of creating its own brand products. Thirdly, Chunlan designed a strategy to gradually occupy the global market and establish its image of brand product, in which it exported its products first to developed countries, which served as the breakthrough point, and then to other countries. At the end, it exported technology and established outlets overseas. It is with the globalization concept that Chunlan achieves its internationalization.

2> Kernel technology guarantees Chunlan success. Chunlan believes that "a company without kernel technology is a company without a soul. A Company without a soul cannot last long." Chunlan would always firstly master the kernel technology before considering entering the market, which...