The China Factor

The Innovation of Globalization – proven strategies to succeed and out-compete emerging competition Does your company know how to compete effectively in the evolving global business arena? What tactics must your company use to overcome price discounting wars that cut into your margins? What are the strategies your new rivals incorporate that may prove more valuable to customers than the superior products you offer? The China Factor equips Western businesses with a practical framework for competing successfully in today’s ever-changing global markets. Written by an expert in competitive strategy and global market expansion, this book is packed with insights gained through first-hand experience leading competitive programs at a high-tech multinational corporation and extensive research.  When it comes to globalization, the rules have changed—what was once nice-to-know is now need-to-know, and this book lays it out in a clear, no-nonsense style. Based on cases with over 50 countries, you will learn why a premium product, though domestically successful, may not be well received in foreign markets. You’ll also discover the critical factors that contribute to success in both emerging and established markets. Disruptive competitors are transformed from threats to examples as you learn to recognize opportunities for re-evaluation, and shift your strategy to stay ahead of the curve. The economic rise of China and other new entrants is challenging Western companies in new ways. This book explains why, and provides actionable strategies for success in any market. Grow and maintain an Innovation Advantage using 5 models Learn from disruptors how to win your emerging markets customers Understand the power of politics in business Develop a deeper Culture IQ to expand your customer base Use a 5-part Strategic Framework to formulate new sales tactics You’re already well-aware of the global threat to Western business, and endless analysis only goes so far toward a solution. You need to know how to respond, survive, and thrive, and just how to regain the competitive edge. The truth is that Western companies must change they way they do business, and push innovation beyond the product and into every aspect of every operation – they need to be innovative in how they do business abroad. The China Factor provides a clear action plan, and case studies from global leaders like Cisco, Xiaomi, and Apple with insightful strategies for changing and winning the game.

Foreword by Ken Wilcox xi Introduction 1 SECTION I State of Affairs 13 CHAPTER 1 The Art of War . . . and Money 15 CHAPTER 2 East and West: The Current State of Affairs 21 CHAPTER 3 How China Came Up the Ladder (and So Quickly) 29 CHAPTER 4 The West No Longer Rules 35 CHAPTER 5 Introduction to the Marketing Framework for Our Analysis 41 SECTION II China 49 CHAPTER 6 How the Chinese Do Business à la the 5Ps: A Brief Summary 51 CHAPTER 7 Market Segmentation and Target Market Selection + China’s Market Penetration Approach 57 CHAPTER 8 China: Product => Solution and Innovation 65 CHAPTER 9 China: Price => Value-Add 73 CHAPTER 10 China: Place => Partnerships 85 CHAPTER 11 China: Promotion => Customer Relationships and Culture 93 CHAPTER 12 China: Politics => The 5th P—The Geopolitical Dimension 105 SECTION III The West 113 CHAPTER 13 Recommendations for the West and Application of the 5Ps 115 CHAPTER 14 The West: Product => Solution and Innovation 119 CHAPTER 15 The West: Price => Value-Add 131 CHAPTER 16 The West: Place => Partnerships 143 CHAPTER 17 The West: Promotion => Customer Relationships and Culture 151 CHAPTER 18 The West: Politics => The Geopolitical Dimension 167 CHAPTER 19 Innovation Models: West and East 185 CHAPTER 20 The West: Positioning 205 SECTION IV Case Studies 217 CHAPTER 21 Frenemies: If You Can’t Beat Them, Join Them 219 Conclusion 239 Acknowledgments 241 Appendix A 243 Appendix B 245 Notes 253 Bibliography and Further Reading 261 About the Author 267 Index 269