Study on Distribution Strategy of Multinational Corporations Localization Management/ÉTUDE SUR LA GESTION DE LA DÉCENTRALISATION DANS LA STRATÉGIE DE LA DISTRIBUTION POUR LES SOCIÉTÉS MULTINATIONALES

By Baoli, Wang; Si'en, Jiang | Canadian Social Science, November 1, 2008 | Go to article overview

Study on Distribution Strategy of Multinational Corporations Localization Management/ÉTUDE SUR LA GESTION DE LA DÉCENTRALISATION DANS LA STRATÉGIE DE LA DISTRIBUTION POUR LES SOCIÉTÉS MULTINATIONALES


Baoli, Wang, Si'en, Jiang, Canadian Social Science


Abstract:

Localization management has become a wise choice for the multinational corporations to win in the host country market. Since long ago, many multinational corporations had neglected the importance of distribution in the localization that caused the localization strategy defeat. Base on analyses the connotation of localization management, the paper summarizes some problems exit in distribution in the multinational corporations localization management such as insufficiency analysis of the host country market, the cultural conflict existence, the channel structure is unaccustomed to the climate and so on, then some corresponding solution countermeasures are proposed.

Key words: Distribution, Localization Management, Multinational Corporations

Résumé: la gestion de la décentralisation est devenue un choix pertinent pour les société multinationales à gagner dans le marché du pays hôte. Depuis longtemps, beaucoup de sociétés multinationales avaient négligé l'importance de la distribution dans la décentralisation qui a causé la défaite de la stratégie de décentralisation. Basée sur les analyses de la connotation de la gestion de décentralisation, cette mémoire résume des problèmes existant en distribution dans la gestion de la décentralisation des sociétés multinationales tels que !'insuffisamment de l'analyse du marché du pays hôte, l'existence du conflit cultural, la structure du canal n'a pas été habituée au climat etc. Donc, les contre-mesures de solutions correspondantes sont proposées.

Mots-Clés: distribution gestion de la décentralisation, sociétés multinationales

1. INTRODUCTION

Along with economical globalization speeding up, more and more companies start to advance into the multinational corporation's rank all over the world. They have already become the important impelling force to promotion the world economic development, and speed up the technical dissemination. According to the statistics by the international trade Association, up to 2005 there are 77,000 parent company and surpasses770, 000 oversea subsidiary companies approximately all over the world, these oversea subsidiary companies create about 450 billion Yuan, and employ 62 million workers approximately, the export value of the cargo and the service surpasses 4000billion Yuan.

When these multinational corporations operate in the host country, in order to meet the host country customer's need, and compete with similar production companies from the host country and other multinational corporations, they use the "localization" management strategy inevitably. It is the wise choice for the multinational corporations to formulation and implementation localization strategy, and it is also the chip for the multinational corporations subdue in the host country market simultaneously.

In past twenty years, the study on localization are extremely thorough, especially localization marketing, but paid a little attention to the distribution and price. That restricted the step of the multinational corporations' localization management seriously.

2. LOCALIZATION MANAGEMENT CONNOTATION

The economical globalization promoted multinational corporations' starting and development. In the new competition environment, the multinational corporations are facing the new opportunity and challenge, a new outlet is seeking by the multinational corporations anxiously. Implement the localization management strategy is the only way to strengthen competitive ability, and win in the host country market under the tendency of global economy integration.

Localization management was widespread augmented after it was proposed, but now its definition is also very fuzzily. Because the influences of the traditional culture the western developed countries just stay in the case classification, explain and so on. While the majority researchers of Chinese thought localization management refers to the multinational corporations to their parent company which establish outside, carry on a series of management which penetrate in the host country social economy.

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Study on Distribution Strategy of Multinational Corporations Localization Management/ÉTUDE SUR LA GESTION DE LA DÉCENTRALISATION DANS LA STRATÉGIE DE LA DISTRIBUTION POUR LES SOCIÉTÉS MULTINATIONALES
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