Open Access

Christian Auffermann

• With the advent of a worldwide internationalization and globalization companies around the globe have been looking to increase their market shares abroad (K Aiginger, H Handler, 2017). For the German automotive industry in particular and therefore the German tool industry respectively, the Chinese market has become a very lucrative and important marketplace in recent years (A Fraß, 2016). This thesis is presenting a case study for the German family-run business Hufschmied Zerspanungssysteme GmbH. It is meant as a foundation and guideline for any future business endeavors in the Chinese market for Hufschmied Zerspanungssysteme GmbH. This thesis consequently examines the current market situation for the tool industry in China and analyses Hufschmied´s competitiveness of its current product portfolio. The German machine tool industry is supplying different branches in China, for this case study a closer look at the aviation industry and automotive industry will be taken. The Chinese market has been exhibiting a large growth over the last few years, but current events such as the implementation of tariffs (UN, 2020) and the recent outbreak of the Covid-19 Virus (SM Iacus et al., 2020) might mitigate the attractiveness of the market. Without a doubt there are both Challenges and Opportunities for the German machine tool industry in the Chinese market. Accordingly, the thesis will with the combination of empirical research data and a market analysis of the Chinese market draw a conclusion to which degree the Chinese market offers challenges and opportunities for the German machine tool industry. Additionally, a PEST-Analysis of the Chinese market will provide further insights regarding the market situation in the target market. This thesis will employ qualitative research methods, the needed data is going to be acquired from primary and secondary sources. As for primary sources, observations and interviews will be used, secondary sources will consist of articles as well as related literature.