Essays on MNC from Emerging Market - Zhuhai Gree Electric Case Study

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The paper "MNC from Emerging Market - Zhuhai Gree Electric" is a perfect example of a business case study.   Zhuhai Gree Electric (Gree) is a Chinese electric appliances manufacturer. The firm was founded in 1991 specialising in air conditioning, research and development, sales and services. The firm grew to become one of the Chinese most successful multinational companies (MNC). The MNC has business in over 100 countries globally and has more than 250 million users. The firm has 80000 employees and has been able to break the US japan monopoly in the air conditioning business (Gree, 2016).

Research shows that firm-level and country-level factors have an influence on business success or failure. A lot of research has focused on the firm and country-level factors on internationalisation. The success of Zhuhai Gree electric can be attributed to both firm and country-level factors. Both have interplayed to ensure business success (Marinova, Child and Marinov, 2010). This report will analyse the role played by both country and firm-level factors in the success of Zhuhai Gree electric. The report will also outline the main lessons that business managers can learn from the interplay of the firm and country-level factors in achieving success. Discussion Firm-level factors According to Depperu and Cerrato (2005), firm-level factors are defined as the controllable factors which give firm advantages in engaging in their activities with the aim of attaining a specific goal.

These factors have been classified as micro and macro factors. The macro-level factors are used to refer to the industry characteristics which include the competition and market characteristics. The micro-level factors include the internal firm factors which include the strategy, structure, firm demographics and the product characteristics (Marinova, Child and Marinov, 2010).

In this case, Gree has adequate firm resources which have enabled them to succeed in the international business. This includes both tangible and intangible assets which are semi-permanently tied to the organisation. Resources are capable of offering firm sustainable performance and competitive advantage. According to Depperu and Cerrato (2005), this is especially if the resources are rare, valuable and hard to imitate. In this case, it would be important to focus on Gree institutional capital, organisational demographics and management.

The institutional capital is an intrinsic resource to the firm. This is very important in the country such as China where the economy is developing. This is due to the fact that the country has not fully developed market mechanisms and resource allocation (Fogel, 2010). The use of cost leadership, flexibility and speed in their production process made Gree have a competitive advantage (Chan, Finnegan and Sternquist, 2011). The firm also encouraged continuous learning and development based on Confucianism. Gree has employed over 2000 research engineers. This is a group of research engineers who have been involved in developing and enhancing firm products.

Research and Development have enabled the firm to be among the global leaders in energy-saving technology through the use of know-how and customer centred innovation. The firm also engaged in technology development partnership early with companies such as Daikin from Japan. It is important to note that during the early years, Gree lacked technological knowhow. To compensate for this, Gree had to license technology from developed countries. Gree used internal learning and when it was able to develop the core technology which outperformed the leading global producers did they form strategic alliances.

The company formed partnerships with the aim of attaining production facilities overseas (Marinova, Child and Marinov, 2010).


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