• Market is open for filtration systems at low cost
• 50% of urban sewage is untreated
• Access to various technologies used in filtration
• Industrial and biological pollution has contaminated almost 90% of the underground water in Chinese cities
• 300 institutes engage in water supply research
• Supply water smaller than U.S. but provide water for 5 times the population
• 90% of underground water is contaminated by industrial pollution
• Chinese tend to purchase luxury products as status symbols
• Mainland China’s water sector is set to be number 1 in five years
• Haikou o has a contract with a water and sewage treatment plant for 30 years. o Good air quality creates a want for people to move to this city. o Rapid population growth every year means progressively larger market base o Tourism creates a revolving temporary customer market o Located by ocean with access to salt water to use in desalinization o City’s ports handle more than half the island’s trade o Multiple university lead to higher education level of residents o Ranked 43rd (of 659)in Chinese cities GDP per capita
Threats
• Acid rainfall can contaminate water
• Current systems can’t keep up with population growth
• Flooding is a threat due to contamination of water by sewage
• Typhoons pose a threat to any seaside locations along with tsunamis
• Current water filtrations systems are owned by private companies
• National disasters could deter tourists from visiting which decrease total customer base
• Energy shortages could cause product failures
• Government regulations could slow down business entry into the country and market
Strengths
• Government is focusing funding on water treatment
• Already making improvements in their reservoirs
• Long term plans to improve qualities
• Government supports funding for drinkable water and possibly investors/businesses
• Lots of investors interested in water filtration products
• China’s water sector is