Analysing the Business Environment in China
Submitted by Priya Tamrakar
UBS 2782210
21 August 2008
Executive summary
Companies over the world are striving to become multinationals. Globalisation and corresponding developments in transport and communication technologies have helped companies achieve this objective and find worldwide markets. Needless to say, aspiring companies need research and knowledge about markets to back their willingness to expand to foreign markets. All markets are different and pose different challenges to operate. For instance, each product has its own unique selling preposition and a one-size-fits-all strategy is not applicable across the global markets. It is important to have knowledge about factors such as people’s potential to buy the product, cultural and religious sensitivity to the product, if any, and the political willingness of the concerned market to accept a product.
This report presents the case of Stillwater designs, a car audio manufacturing company based in the United States of America, for establishing its assembly line in China. The report studies the business environment variables of China, namely the economical, legal, political, cultural, religious and educational factors; to recommend an entry strategy for Stillwater to enter China as a market. The SWOT analysis is also used as a tool to supplement the study of the business environment variables. Stillwater should use this report to determine its likelihood of surviving and succeeding in China as a company. A decision to enter the China market should be followed by a detailed business plan covering financial and marketing plans.
Table of contents
Executive summary i
Table of contents ii
1. Introduction 1
1.1 Company Background 1
1.2 Product line 2
2. China as a market for Kicker 3
3. Country factor analysis for China 4
3.1 Economic environment/factor 5
3.2 Legal environment/factor 5
3.3 Political environment/factor 6
3.4 Cultural environment/factor 7
3.5 Religious environment/factor
UBS 2782210
21 August 2008
Executive summary
Companies over the world are striving to become multinationals. Globalisation and corresponding developments in transport and communication technologies have helped companies achieve this objective and find worldwide markets. Needless to say, aspiring companies need research and knowledge about markets to back their willingness to expand to foreign markets. All markets are different and pose different challenges to operate. For instance, each product has its own unique selling preposition and a one-size-fits-all strategy is not applicable across the global markets. It is important to have knowledge about factors such as people’s potential to buy the product, cultural and religious sensitivity to the product, if any, and the political willingness of the concerned market to accept a product.
This report presents the case of Stillwater designs, a car audio manufacturing company based in the United States of America, for establishing its assembly line in China. The report studies the business environment variables of China, namely the economical, legal, political, cultural, religious and educational factors; to recommend an entry strategy for Stillwater to enter China as a market. The SWOT analysis is also used as a tool to supplement the study of the business environment variables. Stillwater should use this report to determine its likelihood of surviving and succeeding in China as a company. A decision to enter the China market should be followed by a detailed business plan covering financial and marketing plans.
Table of contents
Executive summary i
Table of contents ii
1. Introduction 1
1.1 Company Background 1
1.2 Product line 2
2. China as a market for Kicker 3
3. Country factor analysis for China 4
3.1 Economic environment/factor 5
3.2 Legal environment/factor 5
3.3 Political environment/factor 6
3.4 Cultural environment/factor 7
3.5 Religious environment/factor