INTERNATIONAL BUSINESS - Essay Example

According to the case study, China was an attractive location for Motorola company due to its large size, as such the company set out to enter the Chinese market through establishing an office for its products before the advent of mobile handsets. As mobile handsets began to gain popularity, Motorola concentrated on manufacturing the handsets and selling them in the Chinese market. This became a huge success amid China’s difficult social and political environment. Motorola became a market leader in the Chinese handset market by early 2000s.

This success can be owed to the company’s understanding of the market as well as the needs of the people. However, due to high demand of mobile phones, other companies started to manufacture and sell mobile phones and as such reduced Motorola’s market share. This is why analysts showed scepticism in the continued dominance of Motorola in the Chinese market. Globalisation is the inexorable integration of markets, nation-states, and technologies in a way that is enables individuals, corporations and nation-states to reach around the world further, faster, deeper, and cheaper than ever before (Griffin and Pustay, 2010).

The main motivation behind Motorola’s entry in to the Chinese market in the late 1980’s was due to stiff competition the company was experiencing at home. There was need to look for business elsewhere other than America. The market had become saturated and the cost of production was going higher, therefore making less sales and profits. The best solution was to shift some of its manufacturing facility to China. This was an untapped market with a lot of potential for the products Motorola was manufacturing and selling.

Motorola therefore established an office that represented its products in 1987 and employed over 600 people to sell the products. The case study says that later in early 1990’s, Motorola China electronics was opened as well