Making_it_in_China.docVIP

Making it in China Kai-Fu LeeSeptember, 2003 Table of Contents Making it in China 1 Executive Summary 2 1. Opportunity in China 3 Chinas economic growth has created huge opportunities. 3 The market will grow even more in the next 10 years. 3 The supply of low-cost labor will drive China’s economy for the next 20-30 years 4 China offers tremendous IT talent 4 2. Challenges of doing business in China 5 Challenge #1: Unique protocols and relationships 5 Challenge #2: Contribute first and benefit later. 6 Challenge #3: Hire senior leaders and nurture local people 7 Challenge #4: Play by China’s market rules 7 Challenge #5: the local economy gets top priority 8 Challenge #6: Good image can be elusive. 8 3. Formulas for Success in China: Case Studies 10 Formula #1: Learn the protocols and forge trusting relationships 10 Formula #2: Establish a strategy for long-term commitment 11 Formula #3: Nurture local talent and leadership 12 Formula #4: Be flexible and open to local needs and practices. 12 Formula #5: Help build the local business ecosystem. 13 Formula #6: Build trust from a unified, humble organization 14 6. Conclusion 15 APPENDIX: Analysis of Successful MNCs in China 16  Executive Summary With its booming economy, untapped talent base, and growing domestic markets, China offers massive business opportunities and great strategic importance for any company. China is virtually any company’s largest opportunity for growth in the 21st century. Yet, China’s unique cultural, business, and political environment pose significant challenges to multinational corporations that want to succeed there. Indeed, many companies have fallen prey to these challenges in the past 10-20 years of operations in China. ? On the surface, these challenges appear difficult to overcome; yet, when we study the histories of the multinational corporations operating in China today, its evident that some have achieved exceptional success in China. The experiences of these successful companies can