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Can China Build Global Business Like an Apple or Ikea?

August 19, 2013, 4:15 PM

What's the Latest Development?

With the world economy fighting its way off the ropes, is China capable of supporting global commerce by developing an economic juggernaut like Apple or Ikea? Obstacles abound: "One is the association with inferior quality — after all, brand is all about reputation. 'Chinese companies face a worldwide stigma that their products are low quality. To achieve international brand loyalty, they must make high quality products that consumers will buy again and again,' said Stuart Strother, professor of economics at Azusa Pacific University." Currently, "Made in China" is not a label consumers are eager to seek out. 

What's the Big Idea?

While Western business traditions may promote a culture of impatience when it comes to creating success, China may have a different model in mind. Called the Asian Tortoise Method, the model begins humbly with an inferior product and low pricing, slowly building its resources while increasing quality and prices. "For instance, since entering at the bottom of the market in 1984 Haier has slowly moved up the home appliance manufacturing ladder to become the world's largest white goods manufacturer. Pearl River Piano began operations in 1956, jumped on the US market and is now the world's best selling piano."

Photo credit: Shutterstock.com

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