Entering China - MEX ' s Strategy

Abstract

MEX is a multinational company, specializing in international trade and production of handmade carpets. It plans to enter China by selling its products. Furthermore, it wants to reduce the risk in its holding of US dollars. To integrate these two objectives, MEX will invest in an office property and take it as its representative office in China. In this report, we have first explored the opportunities and challenges involved with selling MEX's products in China. Our analysis employs the International Entry Modes Choice model and Porter's 5-forces model to present a structured evaluation of the many alternatives. We recommend that MEX employ a differentiation strategy in marketing its products. Second, we integrate MEX's real estate investment requirement with its location choice of its subsidiary office in China. Using research methods and results from the literature, we prepare the most appropriate choices for MEX from alternative cities, business districts, and buildings.