Sunday, January 22, 2012

Analysis 1

YEdward Tse, in his article "Is It Too Late to Enter China?", considers the pros and cons to entering China as a business which is looking to expand. Tse's central thesis is about smoothely transitioning into the Chinese economy, while integrating operations elsewhere with Chinese business. He calls this his "one-world" strategy. The speed and sheer size of the Chinese economy can render even the most efficient and successful strategies a failure. It is no longer advantageous to create a business in China by just selling in or sourcing from China. Those business unwilling to take on the "one-world" strategy will be pushed aside by those willing to do so.

The author seems to be talking to those looking to expand their business and get a global competitive advantage. Tse discusses the difficulty in executing this expansion successful. However, if done right, it is definitely worth it. The questions this article tries to answer are possibly "How do I successfully enter the Chinese market?", "Is it worth the risks?", "How is the Chinese economy different than the American economy?" or "What are the Chinese consumers and competiviness of businesses like?"

Tse first gives a general summary on the difficulties of creating a business in China before stating his central thesis. He then goes on to prove his thesis with three points. The end of the article contains "Five Questions for Shaping a China Strategy". There are examples from companies such as Google and all of the problems they encountered, many of which up being political because of the Chinese censorship laws.

By making this article a series of pros and cons, opposing views are stated. It is like "on one hand... But on the other hand". Tse estalishes the various issues, along with the positives and negatives. However, he eventually comes up with possibly solutions.


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