Enlightenment From The Case Of HA Han Shoe Industry'S Pnational Operation

The case of Kazakhstan footwear shows that domestic SMEs have the same opportunities in overseas markets. The commonalities and personalities of Haier and Panasonic large companies in the process of pnational operation are rooted in the general mode of the pnational pformation of the latecomer enterprises, and their individuality arises from the cultural differences between China and Japan and the changes of the international market environment.

This has a certain reference function for Chinese enterprises' pnational strategy formulation and capacity building.

But for the vast majority of Chinese enterprises, they are generally faced with realistic problems such as small scale and strength, low technology content and fierce competition in the domestic market.

How can we embark on a pnational approach from reality?

Let's take a Chinese shoe manufacturer as an example.

The three stage of the growth of the shoe industry in hahara is the predecessor of the shoe industry of hahan, Wenzhou Hengfeng leather shoes factory. The sole proprietor of Wang Jianping was founded in July 1991.

At that time, it was only a leather hand-made workshop with more than 10 workers.

Up to now, the growth of Kazakhstan shoe industry has gone through two stages: making shoes and selling shoes are entering the third stage -- Research shoes.

1991-1997 years is the shoe making stage. The main function of Kazakhstan is the manufacture and processing of leather shoes. All the orders come from leather shoes traders. They have no sales channels and strength, but of course, they do not have R & D resources and strength.

In 1998, the company made two strategic decisions to make the shoe industry enter the second stage (1998-2004 years): manufacturing with sales, abandoning the domestic market and specializing in the international market.

This stage can be divided into two periods. In the early stage, the main function of Kazakhstan is the sale and manufacture of leather shoes, and the production of leather shoes products, mainly relying on their own strength to export products to the international market.

The main overseas markets that have been involved include Russia, the United Arab Emirates, Nigeria and the United States.

The international market development ability of the shoe industry of Kazakhstan has begun to take shape, though it is only a primary form of capability - finding the market, exporting products, mainly selling products by way of stall and consignment, but the shoe industry has made great efforts, which undoubtedly set the foundation for its entry into the next period.

Since the end of 1999, the board has discussed the brand strategy of Kazakhstan, but most people lack confidence in their own brand.

At the end of 2001, the Board agreed to the way of brand grafting.

Ha Shan entered the brand management period.

In the process of implementing brand grafting and looking for suitable buyers everywhere, Wilson of Italy entered the vision of haw.

Through different levels and different ways of contacts and exchanges, the two sides finally reached a takeover agreement in 2004.

In August 2004, the hash shoe industry implemented four major strategic actions: (L) invest $2 million in Nigeria for the first time, and set up "haw (Nigeria) the Atlantic Industrial Co., Ltd." to produce Kazakhstan men's leather shoes locally.

This is the first time that Chinese enterprises have invested and built factories in Nigeria; (2) acquired 90% of Italy's famous shoe manufacturer, Wilson.

Founded in 1958, it is located in the shoe producing industrial zone of Milana Vianna, known as the world shoe capital. It mainly produces men's gentleman shoes, such as WILSON, POLO, VERSACE, TRUSSAR, DONNAKARAN and so on. It has strong product R & D capability and brand influence.

(3) cooperate with Wilson and ARS, a famous footwear design school in Italy, in Wenzhou to establish Kazakhstan.

Wilson footwear research and development center, the first investment of 2 million 200 thousand euros.

The chief designer is Rosanna, the daughter of Wilson's boss. He is a designer of Wilson company and ARS school, and introduces designers to the world.

(4) acquisition of Taiwan Li Jiang Trading Company.

The company has more than 30 years of experience in international market sales, and has a very good sales network in Japan, Western Europe and the United States.

The above four actions will promote the shoe industry to third stages (beginning in 2005): footwear development as the guide, integrating brand, design, manufacturing, marketing and sales resources worldwide.

Kazakhstan shoe industry brand strategy: the hahan shoes industry has experienced the low price competition of Chinese footwear products in the international market, and deeply felt that if the situation is not changed, China's footwear products will not be competitive in the international market, and the market share is difficult to maintain at present.

China's footwear enterprises represented by Wenzhou generally adopt the strategy of skimming in the international market.

This strategy focuses on achieving sales results with the smallest marketing effort and cost, and is a means to gain a small share in a large market.

The advantage of the skimming strategy is that enterprises can generate sales results through minimization of investment and participation.

But its drawback is also obvious: it will make the enterprise unable to fully develop the potential of the market; it will make the enterprise at a disadvantage in the competition with the enterprises that take the penetration strategy.

Before the 2004, the hahshan shoe industry had adopted the strategy of skimming in the international market and a guerrilla skimming strategy.

Kazakhstan has done sales in many countries, and has made the smallest marketing effort.

In the early days of entering a country, because of the small number of competitors, everyone has a better income.

But with the increasing number of competitors and the declining price of products, profits will not be guaranteed.

Under such circumstances, they have to withdraw from the country's market and enter another country's market.

In the new national market, the above competition situation and consequences are repeated.

Finally, Chinese footwear enterprises are always in a state of homogenization, low level and low efficiency.

The shoe brand strategy of the Kazakhstan shoe industry is aimed at this state and is trying to change this state.

In fact, the Haoshan shoe industry is implementing the penetration strategy in the international market.

This strategic pformation is rare among Chinese footwear enterprises.

The acquisition of Wilson and the establishment of factories in Nigeria are two major measures for the penetration strategy of the shoe industry. The two major measures are brand centered global resources integration strategy.

The "three pronged" strategy of Kazakhstan shoe industry and the choice of pnational operation mode are one of the difficult decisions in the pnational operation strategy of enterprises, especially for the first multinational enterprises.

Theoretically speaking, there are three ways of pnational operation: new construction, merger and acquisition and cooperation.

There are advantages and disadvantages in each of the three ways, each of which has applicable conditions and limitations.

Which way is suitable for this enterprise?

It can only be tested by practice.

Wang Jianping, a shoe manufacturer in hahara, provides us with another mode: in the pnational operation, the three ways can be used at the same time, which can be called the "three pronged" strategy.

In the field of research and development, ha Shan shoes industry has taken the form of cooperative alliance, moved the shoe Research Institute of Italy Wilson company to Wenzhou, China, and cooperated with Italy footwear design school to introduce internationally renowned designers.

In the field of production, hahshan shoes industry has adopted two ways, namely, new construction and acquisition. In developing countries, Nigeria has invested and built factories in a new way. In developed countries, Italy acquired 90% of the company's shares by way of acquisition.

In the field of sales, hathon shoe industry adopts M & A to acquire Taiwan Li Jiang Trading Company and Italy Wilson company.

The case of Kazakhstan shoe industry's pnational operation has two main implications for Chinese Enterprises: (1) no matter what way it is adopted, there will be a period of preparation for different lengths.

In Nigeria, the main decision-making basis is three: first, since 2001, hah fir shoe industry has sold hah fir brand shoes in Nigeria, and has a considerable understanding and familiarity with the local market. By the end of 2004, the cumulative sales volume of Kazakhstan leather shoes reached 2 million pairs, and the hah fir brand had a certain consumption group.

Two, in January 8, 2004, the government of Nigeria announced the prohibition of importing 31 kinds of Chinese goods, including the Harman fir men's shoes, to protect the national industry. Now the project has expanded to 41, and most of the factories have begun to retreat.

Three, through Nigeria, the products of Kazakhstan can be exported to other countries in West Africa and the North American market.

(2) take different pnational operation modes for different value chain links.

In the R & D field with the weakest ability and the leading role in the future, Kazakhstan adopts cooperation and places it in Wenzhou, China.

In hah Shan has a certain foundation, the future will determine the future sales of enterprises, ha Shan adopts M & a way, and the acquisition of Taiwan company.

In this regard, Kazakhstan in the future to gradually enhance their ability.

In the manufacturing field with the strongest ability and the lowest value in future, hazon adopts a new way of building new products and builds factories in developing countries.

Like many Chinese entrepreneurs, Harbin shoe industry finds it difficult to find the basis for running Chinese enterprises from foreign theories.

This is not a foreign theory useless, but our Chinese enterprises rarely have the practical conditions presupposed by foreign theories.

This presupposition is the ability of enterprise organization.

The premise of business management theories in foreign countries, especially in the United States, is that enterprises have certain organizational capabilities.

And this condition does not exist or exist in China. Chinese enterprises must gradually improve their organizational capabilities in the course of business operation.

Hahshan shoe industry is no exception. Combined with its global resources integration strategy, the task of capacity-building will be more important and arduous.