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Development of Chunlan multinational operation Chunlan 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 as Russia Spain Iran Brazil etc and has established research institutes in Japan USA and France In 2002 Chunlan established a large and efficient global purchase and sales network by use of matrix management This indicates that Chunlan is implementing its global convection strategy to include capable companies of the world into its purchase and sales network to achieve higher profits Chunlan has gone through three stages in multinational operation 1 product export In the start of 1990s 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
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