The complex internationalization process unfolded: The case of Atlas Copco’s entry into the Chinese mid-market
University of edinburgh MA Social Policy and Economics, United Kingdom
Research Article
International Journal of Scholarly Research in Multidisciplinary Studies, 2024, 05(01), 103–113.
Article DOI: 10.56781/ijsrms.2024.5.1.0042
Publication history:
Received on 13 August 2024; revised on 21 September 2024; accepted on 24 September 2024
Abstract:
The main objective of this research is to conduct a thorough analysis of Atlas Copco's expansion into the mid-market segment in China, and to provide a detailed understanding of the intricate and multifaceted nature of its internationalization strategy. The research methodology adopted in this study is a qualitative case study approach, which aims to thoroughly investigate Atlas Copco's debut into the mid-market segment in China. This methodology facilitated a comprehensive examination of the intricacies, tactics, difficulties, and results pertaining to this particular instance. As an integral component of the quantitative analysis, a multicollinearity test, was also performed on pertinent variables. The study reveals that Atlas Copco has effectively positioned itself in China's mid-market, despite facing hurdles related to regulatory complications, cultural adaption, and rivalry. The company's initiatives have resulted in a favorable success rate of 78%, which is comparable to its performance in other regions. The results highlight the importance of making strategic investments in market entry investment (MEI), promoting local partner engagement (LPE), and prioritizing product adaptation (PA) as key factors that contribute to achieving market entry success (MES). Moreover, the presence of positive correlations between MES and market growth, as well as Customer Satisfaction, underscores the interdependence of these measures in assessing achievement.
Keywords:
Internationalization Process; Regulatory Complications; Cultural Adaption; Market Entry Investment; Chinese Mid-Market; Comparable Markets
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