Good Example Of Essay On Customer Experiences With Chinese Mobile Companies
IP Rights concerns for Chinese Mobile Firms entering Europe Market
IP rights are meant to protect businesses in developed in countries. In Europe, the Chinese companies have been exposed to exhibitions in order to promote their product. The large families of the IP rights are divided into two groups; copyrights and industrial property rights. The copyrights are regulated by the Berne convention while the industrial property rights regulated by the Paris Convention that they usually called as the registered rights.
There are the enforceable rights that cover all the copyrightable work. The work includes musical, film, graphical, photographs, applied fine art, computer software and choreography. Patent and utility models also include trademarks, domain names, design, and semiconductors layouts. It’s useful when dealing with IP rights to understand the issues that exist in the trade fair. This helps describe and analyze the reason as to why public and private interests are the to improve the IRP enforcement mechanism at the trade fairs; the issues are:
Timing: this deals with organizing the trade fairs on weekends so as to achieve and be able to execute an expert order.
Availability of experts: The IP owners are termed to be infringers that don’t reside in the trade fair location. Due to this, they may not be able to get the IP counsel to be able to intervene and assist them in time.
Potential prejudice: Incase of lack of effective intervention, the IP owner may risk double prejudice because of this, they need potential prejudice or counsel who are to stand with them at this time.
In Europe, the China has faced the IP rights infringement that has imposed in the mobile industry of Europe. They have though emerged the faster-growing country in terms of mobile production and selling. A good example is Huawei mobile and tablets.
China, as popularly known to be the mobile production nation, has expanded its businesses in Europe. Most of its phones and technology have hit Europe hence changing and improving technology platforms in the nation. Europe has its law that governs the international and local business. These laws have affected the China IP mobile business in negative and positive way respectively. The law, local and international, enhances the property rights and patents. The intellectual property rights are essential to consider when entering into overseas markets because of having the legal rights to use the economic resource or product, giving income to the company, gives the protection the company needs in order to establish markets as a secure place to invest or internationalize (Peng, 2014)
China has infringed rules on the licensing of the counterfeit its mobile products have been in demand in Europe. Huawei mobile was introduced there, and it became the best in selling. In fact they explain that after Huawei mobile was lounged in Europe it have acted as the key player to the innovations of the ecosystem and it has collaborated with partners, academic institutions and the carriers in order to get the equal benefits. According to XU, Huawei is becoming a real European company since it has approximately 7,700 employees from Europe, and yet it is subject to increasing in the coming days.
Through this study, we see that Huawei has become popular in Europe and customers have taken it as their best network because of its features and involvement in all those activities.(XU 2014)
Patents, copyrights, and trademarks are becoming essential aspects in securing the rights of the brains behind the ideas. Many features of technology have been licensed to prevent the unacceptable duplication, right from the shape of the device, slide-to-unlock and use of finger to zoom. The failure by equipment manufacturers or software developers to heed to this protection might lead to costly litigation as was seen with Apple and Samsung recently. The Chinese producers must understand that the patent laws in Europe are very strict and can be the companies’ greatest barrier in penetrating the European market.
The companies should also be aware of the processes of application of IP rights. As it is, the company must apply for patent protection in that country. The companies must, for this reason, familiarize themselves with European patent application provisions, find the right agency to undertake the process and spend reasonably in securing these rights. Chinese firms should be aware that their competitors have done substantially enough in protecting their IP rights.
In respect to these patent rights, the European market has standardized mobile telephony so that features and accessories can create a collective benefit. Chargers, cables, earphones,, etc. have been standardized to have uniform accessorizing effect. It will be impossible to penetrate the market without meeting those criteria. The manufacturer must, for this reason, seek such licensing from legal holders. Litigation on standardized patents is more prevalent in Europe lately than any other patent. Companies must guard themselves against such violation.
There is an increasing buzz amongst majority of the customers of Chinese mobile industry as it relates to the price. A Chinese device with equivalent features as an Apple one retails far much lesser. In fact, the price is likely to be half the other. This claim is compounded by the argument that even Samsung and Apple manufacture in China so they are primarily Chinese.
The Chinese mobile phone companies are also investing in a state of the art technology and are thus producing devices and software that makes them stand out from the competition posed by the mobile phone giants. The devices and software are becoming preferable than those from the giants, Apple, and Samsung.
The customers have reported a number of pitfall ranging from crude imitations to sub-standard gadgets. Some of the devices produced for African market carried corrupted names of leading brands. The devices had features that imitated the real but are unusable. The devices are said to have poor designs, short life spans, problems with battery and often failure of their accessories to meet standardization regulation.
This model explains how a firm can enter and grow its presence in an international market. The model proposes that a company must gain experience in its area of origin before trying to penetrate a foreign market. The firm will then move to areas geographically and culturally close to it and gradually move to distant ones. The firm will then begin their operations with traditional exports and slowly move to intensive and demanding products or services.
It proposes that a firm should test waters by processing an occasional order before introducing regular exports. It restricts firms from committing a lot of resources to the market until it has sufficiently held a grip on the market. The level of market response will determine whether or not the firm will increase or decrease its investment in the foreign market. When the firm is assured of a good market base then it can introduce foreign manufacturing or processing.
The Chinese mobile phone companies may use the Uppsala model as they seek to penetrate the European market. With the obvious pitfalls of this endeavor, the Uppsala market will ensure that the firms are informed and experienced about the dynamics of the mobile industry market in China before they try the outside market. The companies should then capitalize on market geographically and culturally close to them as they are easier and less costly to conquer, and that the products might find an ease of acceptance than in countries further away. The companies should then gradually introduce their range of products in retail by beginning with commonly acceptable ones. The firms will then open subsidiaries with increased positive response and maybe eventually start manufacturing in the foreign country. This strategy will go a long way towards cushioning the firms against making massive investments in markets they are not sure of and, for this reason, lessen the risk exposure.
The model has been criticized for being insensitive to management decisions that might influence market penetration such as offering of incentives. The model also ignores cheaper and fewer risk methods such as franchising that can be useful entry methods.
Lessons learned from the project
• The firms seeking to enter the international market must understand the market needs and dynamics and tailor their products to meet such needs.
• The firm must invest in proper customer interactions for purposes of feedback, support, and research
• Firms must invest in ideal distribution and marketing channels suitable for their target clients
• There should be more than value-for-money ideology-that customers can get more at a cheaper price
• The firms must find right partners, franchisees or subsidiaries to be able to meet the demands of their customers
• The firms must continually endeavor to reinvent their products in order to keep with the pace of competition.
• The companies should increase their revenue streams and reduce their costs in order to remain afloat.
Justification of Case study approach
The case study approach is a simple method that helps us to gain deeper understanding of an issue or a problem that has been researched before by use of a real life example
Robert K. Yin describes case study as an inquiry into a phenomenon in its real-life context (Yin, 1984). Case studies ignore boundaries across a phenomenon and allow for a multiplicity of methods to be used. It is cheaper and more detailed than other research designs.
Supply Chain strategy for Xiaomi for Europe markets
Retail Storage with Customer Pick-up
In this strategy; the products are stored in the retail stores. The customer makes an order online, walks to the shop, or makes a call to ask for its availability or to reserve it. The customer then picks the product from the retail store.
• The devices distributed are fast moving items.
• Transportation is much lower cost.
• Good response can be achieved with this system because of the local storage.
• The major disadvantages are the increased inventory and facility cost.
• Local storage increases the inventory cost because of the lack of the products aggregation.
Application of Hofstadter’s power and distance dimension
The dimension is related to the problem of human inequality. It explores the extent to which less powerful members accept that power is unequally distributed. Power and inequality will be important factors in the world as all societies are unequal, but some are unequal than others.
This principle applies to the fact that market dynamics will never be equal to all players as each country will favor their own. The firms must realize this dimension and tread carefully in foreign markets as they are bound to get so unequal in the local versus international scenario
Problems that China face
When the Chinese plan to develop the business in Europe, they mostly face IP infringements that are obviously lambent in China. The EU companies suffer so much from this counterfeiting and piracy that really affect their markets in foreign countries. Due to this the European countries have tried to control and ensure that counterfeit products are never sold in the country. This will help the investors in Europe who has original commodities to developing in their businesses.
China does not limit infringement to piracy of movies and music; it even infringes the trade secrets of the highly innovative sectors in Europe. They also steal and misappropriate the technologies. This has brought great concern over Europe, and it has led to the country imposing rules that will make china’s business to slow. Already they have created a bad name that they need to change for them to fit in the European market.
China needs to amend its IPR law system and regulate the IP protection. In order to reduce the sanctions that have been imposed by Europe, they have to review the criminal prosecution rules of the IP infringements. This will bring down counterfeits and hence increase trust and continuity of business in Europe. Otherwise, without that China will face a lot of mistrust in Europe.
Other areas important to the study but not yet included are;
In any business to develop, there should be their strategies that ensure there are customers in a particular area or country. This helps accompany to gain grounds and hence making huge profits to the company.
In IP mobile business, there are many issues concerning security. Any big company to develop, there must be ways of preventing network hacking, spoofing, sperm reduction and many other security issues.
Before a company settles in any place, there must be a study of that place very well. Methodology defined as the way that one used to take research about the field. Questionnaire, sampling and interview among others help in this research.
Peng, M. (2014). Global Business 3rd International edition, published by Cengage Learning International Offices
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"Frost & Sullivan Recognizes Huawei as 2010 SDM Equipment Vendor of the Year". Frost & Sullivan. 27 September 2010. Retrieved 8 June 2011.