Korean Enterprise Export Strategies to China Dependent on Trade Environment Changes
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Purpose – Currently, the foreign trade environment in China has shifted to a very different system. Korean enterprises have been forced to compete with Chinese enterprises in today’s world market owing to the economic growth and technical improvement in China. Research design, data, and methodology – The author visited Korean export enterprises in Shanghai from January 5 to 12, 2014 to implement a questionnaire survey and conduct in-depth interviews with the local enterprises. The author investigated the Shenyang area using e-mail communication. For the questionnaire, one copy of the questionnaire was given to each business and to a staff member for each of the products when a company sold multiple products. Results – Selling cost advantage, efficiency of economic scale, and product differentiation had the most influence on Korean enterprises' export strategy to China. Additionally, entry barrier, product differentiation, and concentration all had an influence on Korean enterprise export strategy to China as well. Conclusion – Korean enterprises developed strategies for price priority, economies of scale, and product differentiation based on changes in the competitive structure in the Chinese market.
Abstract
Purpose – Currently, the foreign trade environment in China has shifted to a very different system. Korean enterprises have been forced to compete with Chinese enterprises in today’s world market owing to the economic growth and technical improvement in China. Research design, data, and methodology – The author visited Korean export enterprises in Shanghai from January 5 to 12, 2014 to implement a questionnaire survey and conduct in-depth interviews with the local enterprises. The author investigated the Shenyang area using e-mail communication. For the questionnaire, one copy of the questionnaire was given to each business and to a staff member for each of the products when a company sold multiple products. Results – Selling cost advantage, efficiency of economic scale, and product differentiation had the most influence on Korean enterprises' export strategy to China. Additionally, entry barrier, product differentiation, and concentration all had an influence on Korean enterprise export strategy to China as well. Conclusion – Korean enterprises developed strategies for price priority, economies of scale, and product differentiation based on changes in the competitive structure in the Chinese market.
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