Internationalisation Strategies Taken by Xerox, Ricoh and Canon - Dissertation Example

The case analysis highlights the approaches and strategies that these organisations had taken in the Chinese office electronics market to overcome the challenges that it poses for companies bent on internationalisation in this setting with highly peculiar characteristics. Contents Internationalisation Strategies Taken by Xerox, 1 Ricoh and Canon to Respond to Challenges 1 Posed By China's Emerging Market 1Abstract 2Contents 3Chapter One 5Introduction 5Chapter Two 8Literature Review 82.

1 Internationalisation Challenges 82.3.1 Local Market Disadvantages 82.3.2 Disproportionate Operating Costs and Denial of Benefits Accorded to Domestic Firms 92.3.3 Cultural Distance and Market Entry Modes 102.3.4 Political Bargaining and Positioning 122.3.5 Institutional Differences and Corruption 132.3.6 Local Density and WFOE Performance 132.3.7 Organizational Capabilities 142.3.3 Administrative Heritage 152.3.4 Organisational Structure 172.2 Internationalisation Strategies 172.2.1 Exporting 192.2.2 International Licensing Agreements 192.2.3 International Joint Ventures and Strategic Alliances 202.2.4 Wholly-Owned Foreign Enterprise 212.

4 Doing Business in China 222.5 The Global Office Electronics Industry 23Chapter Three 25Research Design 253.1 Case Study Approach 253.2 Data Collection 263.3 Framework for Analysis 26Chapter Four 28Case Studies 284.1 Short-Term Challenges 284.1.1 Cultural Distance and Organisational Capabilities 294.1.2 Political Bargaining and Positioning 324.2 Long-Term Challenges 344.2.1 Administrative Heritage 354.2.2 Organisational Structure 374.3 China Strategies of Office Electronics Firms 394.4 Discussion 41 4.4.1 Short-Term Challenges 434.4.2 Long-Term Challenges 43 4.4.3.

The technology for office electronics is closely associated with communications, which was perfected in the US in the 1920s. Thenceforth until the 1970s, the US was the logical world leader in this industry, after which industry leadership shifted to Western Europe. Going into the 1990s, Japan broke into the world economic elite and established dominance over this industry, including all manufacturing activities related to electronics. Now the future of this industry is in China, the world’s most populous nation with 1.

3 billion people and the axis of Asia, which in turn comprises 60 per cent of the world population. Office electronics is an $88.8 billion industry worldwide as of 2004 and still growing, with Xerox, Canon and Ricoh as the global big three. The three are just part of over 600,000 multinational enterprises, represented by about 800,000 subsidiaries, that push internationalisation in the global market (Lou, 2002). Altogether, Xerox, Canon and Ricoh account for some 28 percent of the global market through operations in mostly developed countries.

Such market share, large though it may be, is proving less and less secure as the office electronics industry in developed markets becomes saturated and overcrowded (Datamonitor, 2005). For continued viability and long-term growth, the companies involved have to turn their sights towards emerging markets like China where future growth opportunities lie. China is a particularly attractive market, not only for its sheer size and cheap labour advantage.