The paper "International Economic, Political, Financial, Legal and Socio-Cultural Analysis of China" is a great 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. Potential market China provides the right economic environment for any foreign firm desiring to explore the huge market. The economic growth trends in the last ten years and predicted trends in future show a promising economic environment good for conducting business. Such a robustly growing economy ensures that consumers have enough disposable income to buy products and services being offered in the market.
The purchasing power in China is very encouraging and so is the GDP per capita which stands at US$ 4 421 as of 2011 (DFAT 2011). A number of authors identify exporting as one of the many foreign market entry strategies employed by expanding firms (Strickland 2004). Global operations create opportunities to expand the market and deal with lucrative large-business customers operating in the global market. The Wiggles has the opportunity to explore the Chinese market by utilizing skills learned in operating in the domestic market and foreign markets.
The firm needs to identify a niche market that is not saturated with many players. This is because the Chinese market consumers have the financial and economic capacity to consume a huge amount of entertainment. While China offers a good market by economic and financial standards, there is also the issue of willingness to buy what is offered in the market based on the perceived value and benefits. While China’ s TV programming is strictly controlled by the state, the people of China have remained relatively unreceptive to western TV programmes based on the moral and ethical standing of the Chinese people.
An article by Barboza (2006) in the New York Times discusses the scenario of children TV programming citing the Chinese culture and parents as the greatest impediment to children entertainment marketers as opposed to the government. The author writes that the Chinese culture is very conservative and that parents stick to culture and academic-oriented children entertainment. “ Parents here maybe even more restrictive than the government, viewing Western-style television as too unruly” (Barboza 2006 ).
One Chinese parent, as cited by the author, said, “ I'm not against cartoons. But I try to encourage him (11-year-old son) to watch documentaries on dinosaurs and the Second World War. These programs are useful to his study” (Barboza 2006 ). The author adds that there is not much difference between children’ s TV programmes in China and the classroom. Exposure to the international market will enhance knowledge, technology and equip The Wiggles with better knowledge of operations and marketing in the Asian market. Eventually, this will enhance competitiveness in the new market and also improve quality.
Operating in the Chinese market will also empower innovation and technology transfer in that the company will seek to manufacture products that befit various geographic regions. Salomon (2006) encourages firms to go global to maximize on the benefits of a more globalised global economy. In particular, the author suggests exportation as the most logical mode of entry into a new market. For this Salomon (2006) says that ‘ exporting strategies differentially influence innovative productivity. In particular, firms that participate in more export product markets experience greater innovative productivity’ (p.
104). The Wiggles, exporting to a foreign market is not wholly a new concept as the firm has employed the strategy in some markets in terms of DVDs, CDs and merchandise (The Wiggles).
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