Royal Dutch Shell Company Entry Modes
Explain how and why Royal Dutch Shell multinational company has established its current international presence
Introduction
The Royal Dutch Shell multinational company is the major international producer of oil, natural gas and petrochemicals. The company started exploring their operations in China a century ago. With the implementation of the policy of reform and opening to the outside world in China, the Royal Dutch Shell has sets up two joint ventures oil depots in Shenzhen, China in 1985 and 1987, respectively. After that, the company became more active investing in the Chinese market. It is very hard for a company to enter a market; hence the selection of suitable entry modes is regarded as extremely important. This assignment will identify the reasons for choosing China as a target market and analyze the methods of Royal Dutch Shell has applied in entering the Chinese market.
Main Body
This part will explain how and why Royal Dutch Shell multinational company has established its current international presence in the aspect of entry modes. The following contents are divided into two parts, first is to consider which markets to enter and the second one is to define the s entry modes Royal Dutch Shell used in China.
Choose a target market to enter
Many factors have contributed to Royal Dutch Shell’s presence in China. The following part will analyze why China is a desirable foreign market to enter in three aspects.
1, Market environmental factors
China’s economy has developed rapidly during the past three decades and still shows an upward trend. According to the statistics provided by National Bureau of Statistics of China, China’s GDP has improved more than 10% annually five years in a row, and even during the period of September, 2008 to October, 2010, when the Global Financial Crisis has swept worldwide, China’s GDP has improved 9.4% and 10.1%, respectively. Consequently, the purchasing power of China grows dramatically. (China’s purchasing power is No.2,
Introduction
The Royal Dutch Shell multinational company is the major international producer of oil, natural gas and petrochemicals. The company started exploring their operations in China a century ago. With the implementation of the policy of reform and opening to the outside world in China, the Royal Dutch Shell has sets up two joint ventures oil depots in Shenzhen, China in 1985 and 1987, respectively. After that, the company became more active investing in the Chinese market. It is very hard for a company to enter a market; hence the selection of suitable entry modes is regarded as extremely important. This assignment will identify the reasons for choosing China as a target market and analyze the methods of Royal Dutch Shell has applied in entering the Chinese market.
Main Body
This part will explain how and why Royal Dutch Shell multinational company has established its current international presence in the aspect of entry modes. The following contents are divided into two parts, first is to consider which markets to enter and the second one is to define the s entry modes Royal Dutch Shell used in China.
Choose a target market to enter
Many factors have contributed to Royal Dutch Shell’s presence in China. The following part will analyze why China is a desirable foreign market to enter in three aspects.
1, Market environmental factors
China’s economy has developed rapidly during the past three decades and still shows an upward trend. According to the statistics provided by National Bureau of Statistics of China, China’s GDP has improved more than 10% annually five years in a row, and even during the period of September, 2008 to October, 2010, when the Global Financial Crisis has swept worldwide, China’s GDP has improved 9.4% and 10.1%, respectively. Consequently, the purchasing power of China grows dramatically. (China’s purchasing power is No.2,
References: John D and Lee H., (1995) International Business Environment and operation, 7nd edition, Addison-Wesley Publishing Company Johnson, D and Turner, C (2010), 2nd edition, International Business, London: Routledge Li Lusha(2010) Shell announces three new clean coal technology licenses in China [Internet] Available from Shell (2010) Shell and China National Petroleum Corp. announce natural gas cooperation [Internet] Available from [Accessed 15th November] Shell (2006) Shell Is Global Number One In Lubricants [Internet]