The Entry Strategy of Motorola in China Case Study

The Entry Strategy of Motorola in China - Case Study Example This paper examines the strategic and environmental factors that motivated Motorola to enter China; the effectiveness of Motorola’s entry strategy in achieving its corporate strategy in China; and the appropriateness of Motorola’s staffing approach for senior management in China in relation to their strategic objectives. Since the 1990s, due to the continuous expansion of economic globalization, multinational companies (MNCs) have become an entity that cannot be ignored. MNCs have a major influence on the social, political, and economic life of the world. The success of Motorola in China was truly unbelievable, given the fact that the political and social environment of the country is complex. In order to gain knowledge of the political, economic, sociocultural, and technological environment that Motorola is dealing with in China PEST analysis is conducted. This business tool will help in understanding the strategic and environmental factors that motivated Motorola to enter China. After the 1978 economic reform, China’s economy progressed dramatically. The reform includes promoting foreign direct investment, foreign trade liberalization, private businesses, and employment opportunities. In relation to labor law, China reforms job structures and loosens regulations making it easier for Motorola to advance its localization strategy, which includes recruiting local employees (Guthrie, 2012). In terms of consumer rights protection, after China opened its door to the world and reformed its economy, consumer gained greater awareness of their rights. The improvement of consumer protection is beneficial for Motorola since the market for middle-class consumers is growing (Sun et al., 2013). However, China’s telecom industry is one of the most restricted in Asia and is somewhat barred to foreign competition. One of the key objectives of the Chinese government is to build and offer the telecom-market not to be awash or overstocked, which has a massive impact on Motorola (Guthrie, 2012).