No one said it was going to be easy. China is going to make and break many companies – internationally and internally. Following on from my entry a few days ago (Why you shouldn’t be too worried about India and China), here’s a story from BusinessWeek on how not to do China (GM and VW: How not to succeed in China).
GM and VW are losing out to competitors such as Hyundai, Kia and Chery. A few reasons why:
So what’s the secret for success? Nissan CE, Carlos Ghosn, says, “Being late or in advance doesn’t matter. Make a good product and have good service, and you’ll be successful.” That may be true in the near future, but long-term this market will be like any other, where the difference between competitors is less about what they sell and more about who they are and how they sell. This is especially tricky when working across cultures.
“China used to be an easy game. Not any more.”