International Strategies Analysis on Trane Airconditioning Company

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BACKGROUND “Trane Air Conditioning Company (Trane) was founded in 1885 by James Trane in Wisconsin, USA. With what began as a plumbing and pipe fitting shop, Trane found himself studying the different properties of heating and cooling dynamics” (Trane homepage, 2012). “It was in 1910 when James Trane’s son Reuben got back from college with a degree in mechanical engineering that the father and son team decided to pursue their vision of heating and air conditioning systems and so they incorporated Trane as a legitimate business in 1913. After years of using technology to improve their original systems, Trane became one of the world leaders of HVAC equipment. It was this demand for more global expansion that drove the company to move into the Chinese markets in 1995” (Trane homepage, 2012). STEPPING INTO CHINA Before Trane going into the China market, they have set up their Asia headquarters in Hong Kong, which they believed was the closer country to their targeted market, China. Trane then took on three joint ventures with established local Chinese companies to gain entry into China. The local joint venture’s experience helped Trane gain a factory presence in China and learn the fundamentals of efficiently operating manufacturing plants in China (HVAC News, 2004). At that time, Trane relocated a lot of expertise to China to transfer technical know-how. In order to maintain strong relationship with the local Chinese government in Taicang, where their flagship factory is located, Trane partnership with the Taicang government as one of their strategies. Trane had a lot of support in their quest at being successful in their ventures in China (HVAC News, 2004). According to Marco Wei, Ex - Vice President of Trane Asia, he stated “one of the major keys in the company’s successful transition into China was through their assistance from the Chinese government

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