High-tech path

Primary, low-level, labor-intensive product path

Wholly owned subsidiary

joint venture

Including: contract manufacturing, service outsourcing, order farming, franchising, licensed operation, management contract Advantages: ① Can export intangible assets such as technology and craftsmanship, not just tangible products, so it can overcome commodity trade barriers ② Can overcome high freight costs Situations that cause a product to lack competitiveness in the international market ③ Avoid business risks, maintain stable income, and give full play to the effectiveness of technology Disadvantages: Lack of control, invisibly setting up competitors for oneself, hindering oneself from entering certain markets

1. Leading companies 2. First-tier suppliers 3. Other tier suppliers 4. Contract manufacturers

1. Bureaucratic value chain (direct equity control) 2. Market value chain (no affiliation or control relationship) 3. Captive value chain (implementation of high degree of control) 4. Modular value chain (relationship of complementary advantages) 5 .Associated value chain (division of labor, jointly defining products)

1. Process upgrade 2. Product upgrade - improved design 3. Function upgrade - occupy higher value-added links (R&D, marketing) 4. Value chain upgrade

① Focus on customers who like local brands and abandon customers who advocate international brands ② Frequently adjust products and services to meet the special needs of customers ③Strengthen the construction and management of distribution networks to alleviate the pressure from foreign competitors

By rationally utilizing portable advantageous resources, we can use our success in the local market as a platform to expand into other markets.

① Establish joint ventures and cooperative enterprises with multinational companies ②Sell the company to a multinational company ③Redefine your core business and avoid competition with multinational companies ④Use local advantages to focus on market segments and shift business focus to certain links in the value chain ⑤ Produce complementary products with multinational companies, or transform them into products suitable for local tastes

① Don’t focus too much on cost competition, but measure your own strength against the leading company (compared to the leading company) ②Find a market that is clear and easy to defend (find the market) ③Find a suitable breakthrough in the globalized industry (find a breakthrough) ④Learn key technologies from developed countries to develop their own skills and capital (obtain resources)