Crossing the chasms between Finland and China- a Finnish SME entering Chinese market
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The demands for solving the air quality pollution problems in China have provided Finnish SMEs great opportunities and chances for expanding business in the market. The Finnish SMEs, however, are facing the biggest challenge how to enter the mainstream market in China, besides the cultural and legal differences. This study is based on the assignment of the case company and the goal is to find ways how the company can successfully expand the Chinese market and indicate the action plan. In order to address the question, the study developed a theoretical framework on the factors needed in entering the Chinese market and applied this framework in the case company. The empirical research was based on the use of existing materials and action. The results of the study provide a practical model for companies crossing the chasm between early markets and mainstream markets. A step by step process includes all the phases from choosing the target market to sales of the company itself. One important point for the company to cross the chasm between early markets and mainstream markets is identified as whole product development, including the product the partners. The other one is the positioning itself, achieving the leadership in the selected segment. Results of the study raised many interesting topics for further research. In order to generate more market shares and revenues, how to move from the visionaries to the conservative in the Technology Adoption Life Cycle can be studied in later phase. The second topic can be choosing the next target market in order to achieve the sustainable development of the company. Recommendations can be made regarding how the company can successfully cross the chasm between early markets and mainstream markets.