How large Chinese companies establish international competitiveness in other BRICS: The case of Brazil

Abstract

Based on an abductive approach, a case study is performed on two Chinese multinational corporations (MNCs) operating in the construction equipment industry. These firms do not yet compete directly with major global firms. The reason for this is that Chinese firms have mainly built up international competitive strength in the low-price segment. A major result is a theory on the initial internationalisation strategy of Chinese firms. The main strategic counter-move by European MNC and other major incumbents seems to be to enter the low-price segment in emerging markets, for example, by acquiring local Chinese brands.