The paper "International Economic, Political, Financial, Legal and Socio-Cultural Analysis of China" is a perfect example of a business case study. China is one of the largest markets in the world with one of the fastest-growing economies that continues to attract new marketers keen on expanding their international presence. The Wiggles is hypothetically considering entering the Chinese market as part of their international expansion strategy. The execution of this move though cannot be made blindly as it needs to be considered strategically informed by a reliable feasibility study. The following report provides the findings of an integrated International Economic, Political, Financial, Legal and Socio-Cultural analysis of China.
From the findings, the report will also make informed recommendations to The Wiggles on whether to enter, ignore or postpone entry into the Chinese market. Background The Wiggles is an Australian “ preschool rock band” that mainly markets children’ s music and other merchandise geared towards children development. Their products include an album in CDs and DVDs, television programs, live shows, concerts and an assortment of merchandise. Established in Australia in 1991, The Wiggles have expanded to other countries such as the US, Canada, New Zealand, UK and Ireland (Dowlings et al 2009).
In 2009, the Business Review Weekly named The Wiggles the top-earning entertainment group in Australia for the fourth in a row with earnings of A$45 million (The Wiggles 2012). Such success was only possible after the group changed its strategy to operate as a business brand to be marketed all over the world. The Wiggles as was established in 1991 by two former members of the Australian rock band, The Cockroaches (Dowlings et al 2009).
The group comprised of university students eager to infuse educational concepts to children’ s entertainment. In fact, the first album was produced as a university assignment where each song was explained by an essay indicating its education value in child development (The Wiggles 2012). However, the songs were done in the rock which made appeal even to the adults. This fueled the growth of the Wiggles brand in and out of Australia. Concerts were held around the world and television programs broadcasted. This included venturing into new markets including New Zealand and North America and other English-speaking countries.
This has seen over 17 million DVDs and 4 million CDs sold worldwide (The Wiggles 2012). In a bid to expand its market reach, The Wiggles is considering entering the Chinese market. So how suitable is the business environment in China for The Wiggles? The IFST tests below show the specific issues of the market. Economic factors The economic policy of China China is one of the fastest-growing economies in the world which also has the largest population standing at over 1.3 billion people (DFAT 2012).
Its rapid economic growth has seen the country being labeled as the world’ s superpower in waiting (Strother 2012). The huge population provides a ready market for both local and foreign manufacturers. With a growing middle-income class, the spending power of the country has increased tremendously. This growth is prompted economic policy reforms that started in 1978. These were implemented in two phases. The first phase (1978-1993) involved decollectivization of agriculture, opening up to foreign players and enabling entrepreneurship among the locals (Mente 2012). This allowed many rural people to take up peasant farming and in the process increased productivity in agriculture.
Entrepreneurship was also followed by reforms in the financial sector that saw many people access funding to set up businesses. Opening up to foreign players opened up a way for Foreign Direct Investment in the country for firms keen to explore the huge market and also make use of cheap labour costs.
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