Many people claim that the political force is the most unsettled force. And the lack of safe online credit card payment system is one of the key reasons for this low usage and penetration. They prefer physical shopping and like the face to face contact.
Boston Consulting Group predicts that the volume will increase in near future. For example, population growth and age distribution fluctuate. It is also critical to understand that as China evolves, there is a year old collectivist culture that will probably remain a significant factor of the business environment.
Sigh rate of savings More export business Potential urban growth Any economic development could have a major impact on the SMEs and their actions. Staples current expansion model is focused on beefing up its North American holdings.
The labor cost in China is extremely low. E-commerce has changed how local consumers see shopping. In conclusion, I can say based on this PEST analysisthat China is a flourishing market with the need for some small changes.
Attaining strategic objectives of cost reduction Local differentiation The strengthening of core competencies in certain areas and business activities You are perhaps aware that China is a formal member of WTO. An equity joint venture is one of the most common means of FDI. Companies will benefit if they can understand the external macro-environment in which they function and will operate in the future.
New products being developed New purchasing mechanisms such as the intranet and extranet New production technology New distribution mechanisms like Internet New methods of working like mobile telecommunications A major technological problem in China is that the development of the B2C industry does not have a safe and stable online payment system.
The legal policies and regulations appear to be a little unclear as to the specific requirements or impediments to operating a wholly owned subsidiary in China. ChinaLaw, Unfortunately as Staples is a seller of manufactured goods, there would be little export involved negating Staples ability to open a wholly owned subsidiary.
Other risks include lack of stable and secure online payment systems. Government regulations Both formal and informal rules, which firms must abide by, impact the country.
Some factors which might help are: Staples would also have to employ Chinese labor in accordance with local and central government labor laws and would be encouraged to establish trade unions.
These can alter social trends and cultural values. There are million Internet users in the country. The main challenges for businesses in China are: An exception apparently can be made if at least half of the annual output is exported or if the nature of the operations relies heavily on advanced technology that is beneficial to China.
The independence offered to the foreign investor is often outweighed by the lack of direct links to the domestic economy. Staples The new China, after it transitions to a more open and capitalistic philosophy, offers significant benefits to a company such as Staples.
However, there is still a group who wish to avoid the perceived risk associated with online shopping. Political Factors Political factors which impact China are: Over the past few years, the government focused on the development of e-commerce.
In this situation, Staples would maintain control of their business activities with little interference from the Chinese government although it would be considered a Chinese legal entity under the jurisdiction of Chinese law. All of these create uncertainties and challenges to the market players.Country Analysis of China research papers overview the economic aspects of the Chinese Economy.
Country Analysis of China is a great research paper subject and one that our expert writers can direct you on.
The scramble to launch long-haul flights at the local level may ultimately constrain China's aviation development. China is one of the major players in the global market. PEST analysis of China shows that it is a flourishing country with the need for some small changes.
Menu. China country analysis report studies the political, economic, social, technological, and business risk analysis of china. The scope of this study covers annual trends for the past 10 years and forecasts of GDP and population for the next six years. SWOT analysis of China Country January 12, By Hitesh Bhasin Tagged With: SWOT articles China a country located in Eastern Asia is.
The country analysis tells us to proceed with caution. Before making a final determination about expansion into China, we recommend that a SWOT analysis be conducted along with a competitive assessment of China.Download