ABSTRACT
The external environment includes government policies and regulations, marketing infrastructure, market structure, competition and other political, economic, technological, cultural and social factors that constrain the development of a firms' business strategy. GKN is responsible for providing world-class driveline technology and operations, while the leading Chinese partner delivers marketing. Without the ability to identify, create or utilise 'shi', many Chinese companies simply follow their competitors, in terms of their strategic and marketing approaches, including products and services, with necessary modifications. Consumers are relatively responsive to market research, while markets are relatively predictable, in such aspects as consumer response to marketing stimuli and competitor reaction to company offers. Marketing diligence with Chinese characteristics is vital for companies to succeed in China, so efforts should be made to understand what Chinese consumers say and what they really value; the two often do not go together.
