. Development of Chunlan multinational operationChunlan is an international high-tech big company operating on production, research, investment and trade. It has a gross capital of 14 billion RMB and a net capital of 8 billion RMB. It is among the 50 largest enterprises in China. Major products include electric appliance, bicycle, machinery, electronic information, etc. Chunlan has set up ten overseas branches in USA, Japan, France, Singapore, etc., which forms 5 operating zones of Europe, America, Middle East, Southeast Asia and South Asia. Its products cover 84 countries and territories in the world. Chunlan has set up production bases in 9 countries such ...view middle of the document...
Chunlan has gone through three stages in multinational operation: (1) product export. In the start of 1990's, Chunlan exported products via agents because its products were not well known in the world. It applied some unique approach known as "difficulty first and easiness later". It aimed at the markets in Europe and America and demanded its products to reach the strict quality standards in those markets. It then expanded to the markets of developing countries. (2) Establish global sales network. Chunlan started to set up overseas sales network in 1997. It established over 1200 overseas outlets via strategic union and developed the initial Chunlan product international sales network and Chunlan research information international network. In 1998, Chunlan set up the second retail network in Europe via purchase, hence possessed its own sales network. Its export market of air conditioner expanded from South Europe and West Europe to East Europe and North Europe. (3) Technology exports. Chunlan started to export technology and equipment and establish joint ventures in 1997 first in Argentina, then in Europe, Middle East and Southeast Asia. Chunlan experienced three stages of product export, global sales network, and technology export. It is an approach of steady advancement. Through cross-country operation, Chunlan realized company scale expansion within a short time period. It has been strengthening its comprehensive capability and expanding the brand advantage. It has become a true influential global enterprise. Its multinational operation mode is worthy of further study.