Dragons at Your Door: How Chinese Cost Innovation Is Disrupting Global Competition

by Ming Zeng, Peter J. Williamson

The new competitive challenge from Chinese businesses is like nothing seen by Western companies since the Japanese arrived twenty years ago with their cars and consumer electronics. To fend off these fierce competitors, managers must forget yesterday's image of Chinese companies as producers of cheap, low-quality imitations flooding world markets. In fact, by strategically implementing what the authors call cost innovation, Chinese firms are advancing into high-end products and industries and competing for such high-value activities as engineering, design, and even R&D. The first book to examine this new competitive force, Dragons at Your Door exposes the strategies, strengths, and weaknesses of these fast-rising Chinese competitors, surfaces the underlying logic that enables Chinese firms to attack high-end industries, and provides critical new insight into these very different competitors.

Genres: Business, China

239 pages, Hardcover

First published June 12, 2007

Reviews

[Carter · Rating 3 out of 5]

The arguments, in support, of the central thesis, as well as the data is limited. However, given I know very little about, the China market, it was new to me.

[Michel Fernandes · Rating 4 out of 5]

Excellent points about how Chinese companies are thriving in international business, joining innovation costs with homeland incentives and advantages.

[Jerel Bonner · Rating 3 out of 5]

Dragons at Your Door, is a glimpse into how Chinese companies are changing the global economy. It is a must read for any C level executive trying to maintain, grow, or protect market share that the Chinese have targeted to enter. Ming Zeng and Peter Williamson not only will share with you the practices used by Chinese companies to become leaders in a market, most importantly they will give you clear and easy to understand action plan to identify their weaknesses and how to respond to beat the "Dragons" at their own games.

The authors use real case studies of some of today's most recognized Chinese brands such as Haier, Huawei, Lenovo, Galanz, and others to set the tone that you must protect your business and shareholders from the coming attack, or peril like Illinois based Schiller, which was eaten by Wanxiang automotive part supplier.

The leaders of China say that for China to go from the "world's manufacturer" to the "worlds innovator" the country must become more innovative. Walk into any expatriate hangout in China and ask if the Chinese are innovative, and you will get responses that run the gauntlet of "Without a doubt: to "Only at copying and stealing ideas". This book takes the reader past the politics of Beijing and the metropolis of Shanghai and into world of "Cost Innovation" the Chinese way.

In today's global economic storm, most European and US companies are cutting their labor force. Yet in China, companies add production staff to give them a competitive edge and a cost advantage. What advantage is it to have more people when you can have automated equipment? Many companies ignore Africa as a market since it's too small and poor. These markets are no different than tier 4 and tier 5 regions in China. Chinese companies have already squeezed the production costs for their internal markets. They turn to Africa and the Middle East to hone their exporting and logistic skills. When these two regions are added to their China market shares, these companies can have anywhere between 20 - 40 percent of the global market share before entering the more competitive markets of Europe and North America.

In their book, Zeng and Williamson open the Dragons' play book allowing you to know how they plan to attack your market. The Dragons look for your "loose bricks", those are:
1. Low End Segments
2. Peripheral Markets
3. Troublesome Customers
4. Niche Segments
5. Demand Wedge
Each one of these "bricks" by themselves appear harmless to your organization. However, when executed in a precision manner over time, the Dragon's end up becoming the New England Patriots, dominating their market, and very hard to overpower.

Thanks to Zeng and Williamson, you now have the cure to change the tide. In their book they also address the Dragons' weaknesses. As the saying goes "If you can't beat them, join them", and in the final chapters of the book, the authors layout your action plan of how to join them. For the companies that do, the 21st century will be exciting, for those that miss the boat, watch out for the Dragons.

[Tirath · Rating 3 out of 5]

Dated book - - written in 2007, but fascinating nonetheless.
Lots of verbose stuff, but many very interesting examples.

Haier, Qualcomm, Lifan, MRI and CT scanner makers, classic stories of innovators' dilemmas, and the ingenuity of chinese leaders and manufacturers.

How cost competitiveness is a real advantage
And the public private partnership model can really push companies ahead - if at correct times, given the freedom to be.

Reading this book in 2017 feels unreal. With all this chatter about a devaluation - - all of a sudden it feels that the chinese managers and leaders will be able to battle those demons too.

[Febyan Kafka · Rating 3 out of 5]

Buku yğ mengulas banyak rahasia manajemen dari perusahaan Cina yg sedang menuju go global.Sangat inspiratif,dan banyak memberi wawasan baru.Pada intinya buku ini mengajak kita merubah mindset dalam menghadapi persaingan dan kompetitor.

[Abah]

great book....

[Indah Threez Lestari · Rating 4 out of 5]

872nd - 2011