Question

country is china. please don't handwrite

Country Analysis and Market Entry PAPER OUTLINE 1. 2-page Executive Summary Assessment country's valuable business management and economic insights (current opportunities, challenges and risks) Country Analysis and Market Entry PAPER OUTLINE 2.1-page Market Analysis Identify a new product opportunity (not retail, service or infrastructure) that you believe will succeed in that country. (you cannot pick an existing brand). Explain or give your rationale why does the country represent a good market opportunity for your product fopt.com Country Analysis and Market Entry PAPER OUTLINE 4.1/2-page Conclusion Give the most interesting facts and insights about the country, key challenges, risks, threats of doing business in the country 5. 1/2-page References All your sources of information must be clearly referenced

Answer 1

1. China is one of the biggest economies in the world . They currently do have trade conflicts with US where there is a threat to their exports but they have a overwhelming domestic consumption to fall back upon . They are expected to have a double digit growth in domestic consumption and government will provide the fiscal stimulus . They are expected to grow at a GDP of 6.2 percent . Currently there are huge opportunities for doing business in China . These opportunities are there because of the huge domestic consumption in China . There is a demand for everything which is consumable by the people of China . The disposable of income of their middle class is at an all time high at the moment . They have a large amount of public holidays in China when people do not work at all but shop . They have a well established marketing and payment infrastructure where apps like WeChat are huge game changers . These apps have converted e-commerce into a lifestyle in China where people use these apps for smallest of the purchases . There is a huge demand for big brands in China but on an over all basis Chinese population is conservative in nature so flashy fashions will not sell there .

The major challenges in doing business in China are :

1. Finding a good reliable local contact in china who would help in negotiating with the key agencies & people in China and understanding them & making sure that they have also understood us . Chinese people have a habit of saying yes even if they do not understand the whole thing . They can fail the commitments without realizing the economic after effects of the same . So finding a reliable business partner or contact who understands business is a tough challenge .

2. During the year the Chinese have a large number of long holidays where economic activities completely stops there and these long holidays are generally preceded by a rash of all around activities . So understanding the business cycle and how to make sure business is non affected by these holidays is a big challenge in China .

3. For doing businesses it is important that we have long term relationships . Some how Chinese change the business partners like the throw of a hat . So finding long term partners in China is a challenge .

4. Chinese are masters of mass production so they like doing things in bulk where they some how fail to understand that every unit in the bulk order must pass all the quality tests . In business each activity is important and must confirm to specifications . So Chinese do get casual in business and overcoming this is a challenge .

The biggest risk of doing business in China is that everything gets censored there by the government so any time one can be asked by the government to pack off the bags if any thing said against the government . Another risk is the ongoing trade conflict with US where again outsiders can be targeted in China with new tariffs .

2. One product where we see a huge potential in China is selling pharmaceutical drugs through tie ups with Chinese hospitals and Chinese Government Agencies . China currently have the second largest market for pharmaceuticals. One child policy has ensured that over long term 2/3rd of the population will be older . As a result their population at large is aging rapidly. At present in China there is zero tax on anti cancer drugs and antibiotics . There is a significant ease in approval process as on date in China for these drugs . China has a market for USD 19 billion for these drugs which is the combined market of Indian drug manufacturers in US and Europe . Indian manufacturers can eye this big long time market opportunity where if medicines are found to be good the Chinese population will stick to these on long term as these are life saving drugs and not business deals . As far Chinese market is concerned where pharmaceutical drugs are routed through government hospitals the important aspect is these drugs have to be cheaper and good . The India pharmaceutical drug manufacturers can chip in here as their drugs are cheaper and effect . What is required is a long consistent and concerted effort as the initial approval process is quite long in China but once they go through they will be there in the long run .

4.

China is a giant country with giant opportunities for business . But it has its challenges which are quite unique and peculiar in nature . What is required is patience and persistence in understanding the ways of doing business in China and setting up all resources and contingency plans in place before actually commencing business . In China since there are lots of regulations and government interventions any thing can happen at any time so one has to be ready to pack off from the country at the earliest . Another important aspect is to master the art of ensuring business commitment from business partners in China . And the most important aspect is to master the art of developing good , dependable and ethical middlemen in China .