Analyzing European Firms’ Market and Nonmarket Strategies in Asia

Abstract

Despite recent currency crises, most of the Asia-Pacific economies continue to be among the most attractive markets in the world and now appear to be recovering rapidly. The previous track record of the newly industrializing countries, phenomenal Chinese growth rates, and widespread economic liberalization testify to this recovery. But the ups and downs of the Asian market have forced Japanese, American, and European firms to rethink their strategies. Some firms have responded by increasing investments in the region, hoping to benefit from a quick economic recovery and the sale of distressed assets that will leave them well positioned to profit from renewed growth in the region. Other firms are concerned that their excessive reliance on exports to Asia has made them highly vulnerable.As a result, they have sought to diversify their marketing effort and have attempted to position themselves in newly emerging markets in Latin America, Eastern Europe, and elsewhere. The key focus of this book is to analyze the strategic interplay between governments and firms in Asia. By systematically examining the nature of European investment and trade strategies in Asian markets in a variety of sectors, and by comparing European firms with American and Japanese firms (in two companion volumes), we hope to understand the factors that affect competitive success.

For comments on earlier versions of this chapter, I would like to thank Cédric Dupont, Kun-Chin Lin, Trevor Nakagawa, and Ralph Espach.