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The Choice of Entering the Chinese Market through Strategic Alliances and Wholly Owned Subsidiaries

Student: Koniarova Nikola

Supervisor: Irina Kratko

Faculty: Faculty of World Economy and International Affairs

Educational Programme: International Business (Master)

Final Grade: 10

Year of Graduation: 2017

Presented Master's thesis bears topic 'The choice of entering the Chinese market through strategic alliances and wholly owned subsidiaries'. The main intention of the thesis is to aid the foreign investors planning to enter the Chinese market select the most suitable entry mode. In order to reach this objective, benefits and pitfalls of the aforementioned entry modes, as well as the factors impacting the foreign investors' entry mode choice are profoundly examined. Special attention is paid to the financial performance of the strategic alliances and wholly owned subsidiaries present on the Chinese market – phenomenon that has been up to now disregarded by the researchers as a significant factor impacting the foreign investors' entry mode choice into a foreign market. The investors' awareness of the performance of different entry modes present on the host market enables the investors to select the most appropriate entry mode into the host market, as it facilitates strategy formulation, as well as future strategy adjustments. Such approach is vital as the investors' ability to prepare a suitable strategic plan for entering the Chinese market substantially increases the chances of the investing firm to survive and succeed in the People's republic of China.

Full text (added May 11, 2017)

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