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Competition Among Foreign And Chinese Agro-Food Enterprises In The Process Of Globalization

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  • Wei, Anning
  • Cacho, Joyce A.

Abstract

Based on various case studies, this article examines the interaction of foreign investors and local operators in globalization in the agro-food market in China. The study found that to break the limitation of the high-end market and to position mainly in the middle market were critical for international brands to succeed. Asian companies approached the China market as an insider because of cultural proximity. The latter, plus focused management and effective technology, made their operations profitable easily, but also exposed them to the risk of overexpansion. Quality products at affordable prices were the catch-up approach adopted by local players. At the early stage of globalization, winning tactics for local enterprises include imitating and participating in foreign investments, and exploring the markets where foreign investors have no advantages. In the China market, foreign and domestic enterprises were competing, complementing, and collaborating with each other to allow each to achieve its goals. The study analyzes the sophisticated relationships between domestic and foreign players, and provides inputs to strategic discussions of foreign investors and Chinese local enterprises about how to improve their competitive positions.

Suggested Citation

  • Wei, Anning & Cacho, Joyce A., 1999. "Competition Among Foreign And Chinese Agro-Food Enterprises In The Process Of Globalization," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 2(3-4), pages 1-15.
    • Handle: RePEc:ags:ifaamr:34239
    DOI: 10.22004/ag.econ.34239
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    References listed on IDEAS

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    1. Thompson, Susan J. & Tadlock Cowan, J., 2000. "Globalizing Agro-Food Systems in Asia: Introduction," World Development, Elsevier, vol. 28(3), pages 401-407, March.
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    Cited by:

    1. Thomas Reardon & Kostas Stamoulis & Prabhu Pingali, 2007. "Rural nonfarm employment in developing countries in an era of globalization," Agricultural Economics, International Association of Agricultural Economists, vol. 37(s1), pages 173-183, December.
    2. Reardon, Thomas, 2011. "The global rise and impact of supermarkets: an international perspective," 2011: The Supermarket Revolution in Food: Good, Bad or Ugly for the World's Farmers, Consumers and Retailers?, 14-16 August 2011 125312, Crawford Fund.

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