Cross cultural management (2006)

Résumé du document

Thanks to the new communication technologies of the 20th century, big firms have moved from local or national market to international markets. Most of the important national firms have perceived foreign markets as new opportunities to increase their turnover.

A firm wants to launch its products in foreign markets when the local market has become saturated. When most of the potential customers have been touched by the product, the firm has to find some solutions to increase its revenue.

First, if the firm wants to stay in its national market, it has two main choices. It can make efforts to penetrate the market deeply, that is to say to win competitors market shares. The other solution is to develop a new product in the same market to increase the turnover via another method. Secondly, the firm can try to work in foreign markets. If the firm enters a new market with the same product, we have to create a market development strategy. Some times, foreign markets are real opportunities for firms because the groundwork has been done. In addition, as it is an emerging market, competition is not stiff Maybe there is no competition at all so, more and more profitable firms decide to export their products.

Extraits

[...] PSA has understood that the chinese core values (what they learn before being ten years old) were too strong and too different from french one to be occulted. Instead of being a barrier, culture has being a competitive advantage for Citroën. In France, we can remember the case of Toyota with the which is made in Valenciennes, a french town from North of France. Toyota advertises saying: Yaris, the most frenchie of the stranger cars!”. Citroën has done the same thing in China. [...]

[...] Cross cultural management (2006) Introduction Thanks to the new communication technologies of the century, big firms have moved from local or national market to international markets. Most of the important national firms have perceived foreign markets as new oppurtunities to increase their turnover. A firm wants to launch its products on foreign markets when the local market has become to short, when the main part of the potential customers has been touched by the product. When the market has become to small, the firm has some solutions to increase its revenues. [...]

[...] It appears to be the good choice to mix cultures. Concerning the employees, Citroën has perceived the need of security of the chinese workers. Chinese are very close to the firm where they work, that is to say that the goal of each worker is to work in the same firm all his life long. What's more, a chinese employee would like his children to work in the same firm as him in the future. It is another difference between Frenches and Chineses. Citroën has understood this point too. [...]

[...] Citroën decided not to launch a little one, less expensive like the AX for example because Citroën datas over Chinese culture showed that the chinese didn't want to have little cars because they are very close to space and security. When Citroën has been authorised to build a plant in China, it was only the beginning of the chalenge. Will Citroën be able to work with chinese workers, with chinese suppliers, under chinese authority? To success in selling cars in China, we have seen that a firm need to produce in China. [...]

[...] Thanks to this long term strategy, chinese authorities accepted Citroën to produce in China, nine years later. Effectively, in 1992, Citroën made a joint venture with a local autobuses producer company, Dongfeng Motors. DCAC (Dongfeng Citroën Company) was created and the firm still take place in Wuhan, on the chinese east coast. Citoën succeeded in being the second car manufacturer to produce in China years after Wolkswagen, which began to produce in China in 1985. Let's move to the main part of this demonstration. [...]