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The China Factor: Leveraging Emerging Business Strategies to Compete, Grow, and Win in the New Global Economy



"The China Factor's case studies and practical resources make this book a must-read for any corporation that wants to win globally, particularly as innovation is being redefined."
—SIMON KHALAF, Senior Vice President,Yahoo Inc.

"Karam skillfully paints a colorful account of what it means to compete successfully against a new generation of competitors, as only someone with real, practicalexperience can."
—ANTHONY R. VONSE, former Managing Director Sales, Emerging Africa, Cisco Systems

"A refreshing handbook for anyone interested in competing in the new global economy."
—CALESTOUS JUMA, Harvard Kennedy School, Professor of the Practice of International Development

"I especially liked Karam's advice on using U.S. Government resources—an often overlooked force multiplier for American businesses, and how best to leverage your own company's Government Affairs groups to succeed. This is a must-read!"
—FRED SCHWIEN, former Executive Secretary of the U.S. Department of Commerce and Boeing Executive

"Amy Karam has done the business community a huge favor by making sense of many of the trends which are reshaping the global environment at a breathtaking rate, and then offering her thoughts on how to take advantage of the opportunities."
—BRUCE PICKERING, Vice President Global Programs, Asia Society, Northern California

"The China Factor provides a new strategic framework and an essential set of marketing guidelines for Western companies that have to compete or partner with Chinese firms in OECD countries, China or emerging market countries."
—DR. RAYMOND LEVITT, Kumagai Professor of Engineering, and Director, Global Projects Center, Stanford University

Amy Karam is a highly sought–after speaker, consultant, author, and corporate instructor of Stanford University courses, as well as her own workshops. As a strategy consultant, she equips startups and established corporations to succeed in global markets with actionable strategies and execution plans. She has worked with companies such as Cisco, Apple, Visa, Nationwide, Capital One, AT&T, and Bell.

Foreword by Ken Wilcox xi

Introduction 1

SECTION I State of Affairs 13

CHAPTER 1 The Art of War . . . and Money 15

CHAPTER 2 East and West: The Current State of Affairs 21

CHAPTER 3 How China Came Up the Ladder (and So Quickly) 29

CHAPTER 4 The West No Longer Rules 35

CHAPTER 5 Introduction to the Marketing Framework for Our Analysis 41


CHAPTER 6 How the Chinese Do Business à la the 5Ps: A Brief Summary 51

CHAPTER 7 Market Segmentation and Target Market Selection + China’s Market Penetration Approach 57

CHAPTER 8 China: Product => Solution and Innovation 65

CHAPTER 9 China: Price => Value-Add 73

CHAPTER 10 China: Place => Partnerships 85

CHAPTER 11 China: Promotion => Customer Relationships and Culture 93

CHAPTER 12 China: Politics => The 5th P--The Geopolitical Dimension 105

SECTION III The West 113

CHAPTER 13 Recommendations for the West and Application of the 5Ps 115

CHAPTER 14 The West: Product => Solution and Innovation 119

CHAPTER 15 The West: Price => Value-Add 131

CHAPTER 16 The West: Place => Partnerships 143

CHAPTER 17 The West: Promotion => Customer Relationships and Culture 151

CHAPTER 18 The West: Politics => The Geopolitical Dimension 167

CHAPTER 19 Innovation Models: West and East 185

CHAPTER 20 The West: Positioning 205

SECTION IV Case Studies 217

CHAPTER 21 Frenemies: If You Can’t Beat Them, Join Them 219

Conclusion 239

Acknowledgments 241

Appendix A 243

Appendix B 245

Notes 253

Bibliography and Further Reading 261

About the Author 267

Index 269