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Dragons at Your Door: How Chinese Cost Innovation Is Disrupting Global Competition
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ISBN
:
9781422102084
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Publisher
:
Harvard Business School
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Subject
:
Business & Management
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Binding
:
Hardcover
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Pages
:
256
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Year
:
2007
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2555.0
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Description
The dragons are coming. Companies in Europe and the Americas have not faced such an overwhelming threat to their domestic markets since the Japanese arrived with their cars and consumer electronics. To fend off these fierce competitors, managers must forget yesterday's image of Chinese companies as producers of cheap, low-quality imitations flooding world markets. Using what the authors term, cost innovation, Chinese firms are advancing very quickly into high-end products and industries and competing for such high-value activities as engineering, design, and even R&D, not just basic manufacturing. Few firms will be immune to the global impact of Chinese Companies. Chinese competitors will create new pressure on margins across a wide range of industries and stages in the value chain. They will not only attack today's mass-markets, but also break down the barriers that have hitherto protected highly profitable, niche businesses.As the first to examine this new competitive force, this book develops a robust, theoretical framework for thinking about the issues raised, building on detailed case analysis of leading Chinese companies. It will expose the strategies, strengths, and weaknesses of these fast rising new Chinese competitors, surface the underlying logic that enables Chinese firms to attack high-end industries and sophisticated activities so quickly, and equip managers with a new competitive mindset and insight into these very different competitors.
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