ABSTRACT
After 30 years of reform and opening up, the absorption of foreign capital in China
is facing a multi-dimensional and multi-level international competition, global
transnational direct investment overall trend rebound, internationalization of
multinational companies, continuous improvement, the future possible new increase in
transnational investment. In 2013, PWC's recent survey of 227 multinational company
CEO shows, China is one of the multinational companies, investment choice for
multinational companies on China's huge spending power. According to the survey, 56%
of respondents said they wish to invest in China, of which 52% in Brazil, India of 37%,
the United States of 34%.Chinese constantly optimize the investment environment,
what attracts more and more foreign companies to enter China's vast domestic market.
With carrying and implementing the extent of opening-door policy progressively in
China, and the performance of China's accession to the world trade organization
deepening commitment fulfilled in China. In the world economic connection
over-extended, not only China is blended in among them, and itself has become a
domestic and foreign enterprises strive for the vast market together. Many fields of the
business has a strong national or regional features, they must meet the needs of a variety
of consumers, so companies need a localization strategy. At the same time, foreign
companies also have pressure from the enterprise itself that make companies choose
localization, for example joining into the national culture of local employees and their
comprehensive production cost reduction, etc.
Thesis research object is the product which is from AH company of the Swedish
wholly owned foreign enterprise. Firstly we reviewed the recognition theory of product
competitiveness elements. Through the product competitiveness and the internal
connection of the product itself. We define the factors that affect product
competitiveness, and put forward the evaluation model of product competitiveness. The
author combined with foreign products of the internal and external environment and
used porter five models to analyze the five aspects which were from the new entrants,
supplier bargaining ability, buyer bargaining ability, substitutes and existing competition
between rivals. At the same time, we used SWOT method to analyze the multinational
AH company’s products’ advantages, disadvantages, opportunities and threats, and
found that the existing problems in the present situation of Chinese market development
and the competitiveness.