Internationalization of Chinese Construction Equipment Firms : “Take-off Drivers & Entry Strategies”

Abstract: This master thesis investigates how Chinese construction equipment firms internationalize (i.e. how they enter new markets and how they are driven to exit their own). For this, the institutions of China and Brazil are comparatively analyzed, Porter’s five forces model is used to analyze the Chinese construction equipment industry, while distinct resources, capabilities and key success factors are defined and analyzed for Sany and Xuzhou Construction Machinery Group (XCMG). After careful analysis, the authors bring to light various take-off drivers, patterns and strategies of Chinese construction equipment firms when internationalizing or venturing abroad. Chinese construction equipment firms are beginning to follow their Western counterparts, focusing their efforts on product quality and extensive customer service. Warranties, parts centers, aftermarket service and strategically placed research and development facilities are becoming more greatly utilized, expanding the quality and offerings of Chinese firms, while adding to the customers perception of overall value.    These key insights expand the knowledge base associated with Chinese construction equipment firms in developing markets, while unlocking new theoretical perspectives for supplementary research.