Developing a logistics and distribution network in China

Foreign Multi National Companies (MNCs) encounter many difficulties when doing business in China, where the attraction of its 1.3 billion potential customers is a great lure. Unable to overcome these challenges, many failed and it is often attributed to China's lack of proper logistics and dist...

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Bibliographic Details
Main Author: Ung, Kin Lim
Other Authors: Kam, Booi Chung
Format: Theses and Dissertations
Published: 2008
Subjects:
Online Access:http://hdl.handle.net/10356/5318
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Institution: Nanyang Technological University
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Summary:Foreign Multi National Companies (MNCs) encounter many difficulties when doing business in China, where the attraction of its 1.3 billion potential customers is a great lure. Unable to overcome these challenges, many failed and it is often attributed to China's lack of proper logistics and distribution infrastructure, coupled with its difficult business environment. These are two of the main reasons why business finds it hard to succeed there. However, there are MNCs that have succeed in China, suggesting that some MNCs adopted the right strategies to overcome these two issues, while others did not. This dissertation is an attempt to develop a strategy to overcome the challenges MNCs would encounter in its logistics and distribution. This is done by first gaining a deeper understanding of China's current logistics and distribution situation, by analyzing the issues causing the current state of its logistics infrastructure and distribution practices, and then by using a case study to validate the findings.