In the initial stage, machine tool enterprises focus on core resources and comparative advantages to carry out international business, continuously expand and extend the industrial chain, improve comprehensive competitiveness, and develop from specialized operation to comprehensive operation, transforming from a single product service provider to a comprehensive product service provider.

What are the five major misconceptions in the international development of the machine tool industry

Misconception 1: Internationalization must start with marketing. Enterprises not only need to start from product marketing and service output, but also need to absorb advanced innovative technologies and international management experience from abroad.

Misconception 2: Internationalization is more important than domestic. Machine tool companies cannot ignore the domestic market in order to prosper the international market. The biggest obstacle to international operations is that Chinese machine tool companies have not yet truly won the local market.

Misconception 3: Mergers and acquisitions are the best path to internationalization. Appropriate international mergers and acquisitions, if operated properly, may be a feasible way to leverage complementary advantages, complement each other's strengths and weaknesses, and achieve a win-win situation. However, there are also huge risks hidden in cross-border mergers and acquisitions, especially the integration risk after the merger.

Misconception 4: Pursuing comprehensive internationalization of business operations. In the initial stage, machine tool enterprises focus on core resources and comparative advantages to carry out international business, continuously expand and extend the industrial chain, improve comprehensive competitiveness, and develop from specialized operation to comprehensive operation, transforming from a single product service provider to a comprehensive product service provider.

Misconception 5: Sinicization of international brands or internationalization of Chinese brands. There are three situations that need attention: first, rushing to replace the brand, and rushing to stick Chinese brands after mergers and acquisitions; Secondly, there is a lack of reasonable transitional space in the rush to innovate overseas brands and transform them into Chinese brands; Thirdly, it is believed that Chinese famous brands or trademarks are global brands.