Recently, Hitachi Construction Machinery stated that it will strengthen and consolidate the overseas talent training program from 2011 and gradually employ local senior management personnel as the senior manager of the branch company of Hitachi Construction Machinery. This move can be seen as the strengthening of talent localization by Hitachi Construction Machinery. Another major breakthrough.

Under the influence of globalization, production, systems, management, and personnel localization have long been an important part of the company's expansion strategy and have become an important means for the development of many multinational companies. It can be said that the development of Japanese construction machinery companies in the Chinese market is one of the few successful models typical of Japanese companies’ localization in China.

However, in the process of continuous in-depth localization of Japanese construction machinery companies, it is also necessary to pay attention to several common issues.

First, the instability of localized production. In recent years, the vigorous development of China's market economy has become more and more attractive as a consumer market compared to the attractiveness of China as a manufacturing center in the world. As the level of manufacturing in China continues to increase, existing labor-intensive assembly plants are gradually being replaced by high value-added production. This means that more skilled workers and higher wages are needed. Once the workers’ requirements are not satisfactorily satisfied, labor disputes may arise, and historical grudges in China and Japan can easily intensify disputes. In the middle of 2010, strikes caused by labor disputes, including Toyota, Honda, and Sammi, are good examples.

Second, the incompleteness of management model localization. Although joint ventures established through cooperation and mergers and acquisitions are localized in terms of form, they are usually due to the high level of the company being Japanese personnel and copying the high efficiency model of Japanese companies in the production management of the company. This efficient model is achieved through a strict hierarchical system and employee loyalty to the company, but this model is not suitable for development in China. Even if some joint venture companies appoint Chinese employees as management, they often lose autonomy because Japan’s headquarters is too restrictive.

Again, the loss of autonomy can easily lead to delays or deviations in the analysis and judgment of the market situation. With little impact from favorable market conditions, the construction machinery market in China continued to rise in 2010. Senior executives at the Japanese headquarters can easily command production increases by looking at rising sales. In the event of a market downturn or turmoil, it is difficult to get the most timely market news to make the most rapid response. For example, in 2006, Japanese mobile phone companies such as Mitsubishi and Panasonic had a total defeat in the Chinese market. This was due in large part to the distrust of Chinese managers and their unresponsiveness to the market.

Any market turmoil may affect the company's life. Whether it is technical support, product image, or media exchange, localization requires a warm and modest attitude.

Localization actually requires companies to integrate into the local market with a more open attitude. Japanese construction machinery companies always maintain a certain leading edge in technology, and the level of product technology directly determines the status of the company in the market. While localization is being produced, localization should also be researched and developed. In this way, the market can be well grasped, and relying on the original development strength of the company, it can perfectly meet the market demand in product positioning and product design. More respect for the market, more respect for customers in order to win a wider range of competitive advantages.

As an aspect of localization, the agency model can strengthen the relationship between companies and customers. Japanese construction machinery companies represented by Komatsu, Hitachi Construction Machinery, and Kobelco have, through flexible agency mechanisms, increased their market share to some extent. Image, but if you want to continue to develop steadily in the Chinese market, there is still a long way to go to develop a true localization strategy.

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