Entering China-MEX's strategy

MEX is a multinational company, specializing in international trade, and is active in the area of handmade carpets, electronic devices, and other products. It plans to enter China by selling its handmade carpets that are made in Iran. Furthermore, it wants to reduce its currency risk associated with its holdings in US dollars by investing in a Chinese office property. To integrate these two objectives, if feasible, MEX will take advantage of the business property as its office and establish a representative office in China. In this comprehensive report, we have first explored the opportunities and challenges involved with selling MEX?s handmade carpets in China. Our analysis employs the International Entry Modes Choice model and Porter?s 5-forces model to present a structured evaluation of the many alternatives faced by MEX. Our final recommendation is for MEX to employ a differentiation strategy in marketing its handmade carpet products. Second, we integrate MEX?s real estate investment requirement with its location choice of its subsidiary office in China. Using research results from the literature and the real estate valuation model, we prepare the most appropriate choices for MEX from alternative cities, business districts, and buildings, by provding a list of target buildings on West Nanjing Road and in the Jingan Temple district in Shanghai. The next step for MEX is to begin its negotiations with the property sellers.