Opportunities and Threats Analysis for European Born Global Companies on the Chinese Market
Opportunities and Threats Analysis for European Born Global Companies on the Chinese Market

Summary/Abstract: Companies which do not follow traditional internationalization path, but start international activitiesimmediately after their founding, are called born global companies in the international literature. This relatively new type of international entrepreneurship can be challenging due to limited international experience and lack of resources. It seems even more difficult to internationalizea venture directly from Europe to the Chinese market. The purpose of the paper is to analyze potential opportunities and threats for European born globals entering the Chinese market. The study shows that the main opportunities provided by the Chinese market are: its size, rapid growth (whichis, however, slowing down), increasing consumer middle class, modern infrastructure, cheap workforce supply, improvement in workforce qualifi cations and political stability. Unfortunately, thereare also some threats of rapid internationalization in the Chinese market which are caused by cultural,social and political differences.

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