The effects of cultural barriers on market entry strategies

The increasing interests worldwide urge researchers to examine the strategies used specifically for tackling the Chinese market. This urgency is brought forward by the fact of a low success rate of international businesses operating in China in the past twenty years. This paper identifies the fundamental barrier - cultural difference and its impact on Australia China business practices. It identifies the differences which impinge on basic decision making processes. It raises the issue of where cultural factors should be placed in organizations. It stresses that consideration of cultural differences plays an important role in the success of entering the Chinese market. Through a single case study of an Australian organisations operation in China, it is demonstrated that cultural differences should be considered at a strategic level rather than an operational level. This will allow appropriate strategies to be implemented rather than constant acijustments to strategies.