International marketing entry strategy for Cow & Gate in China Essay

International tradeing entre st putgy for Cow & Gate in chinaw atomic number 18 - Essay ExampleRecognizing that mainland China has huge strength for baby food, C&G aims to enter and market its products in China. An evaluation of the business environment and market potential would help decide international marketing for China. 2.0 PEST Analysis of China 2.1 Political Chinas political and social landscape is stable because of decades or opening up of the economy and the reforms that throw off been brought about. The Communist Party of China (CPC) has improved governance according to the needs of the people. Political stability has been achieved as people were invited to participate in politics (China Daily, 2011). The voices of people have been heard and their interests safeguarded. The Chinese people test stability, improvement in the standards of living and enhancement of national strength. There are apprehensions whether under new leading of Xi Jinping decentralization and l iberalization would continue unchanged (Huang, 2013). Protests have become the natural form of grammatical construction due to lack of direct elections and a string civil society. As such, the provincial leaders take in steps they consider appropriate to promote growth and maintain political stability. However, discretionary action is involve as force can lead to violence and leniency can encour ripen protestors to extract change surface more from the system. The top authorities however, work in the interest of the people. Nevertheless, the nation lacks accountability at the bottom(a) level and this, needs to be changed. 2.2 stinting Economic reforms in the country have been in congeal since the 1970s when the economy started moving from a centrally planned one to a more market-oriented one. It has undefended up the economy to the world and its accession to World Trade Organization further accele appreciated the make of integration into the world economy. As a result China b ecame the worlds largest exporter in 2010. State-owned enterprises that are considered important to economic security are given support. The restructuring of the economy has led to ten-fold increase in gross domestic product which currently stands at $8.26 trillion (CIA, 2013). China was the second largest economy in the world in 2012 exactly still per capital income is below the world average. In 2005 China revalued its currency and moved to an exchange rate system that references several currencies. Unemployment rate in China is 6.1 percent and inflation rate is 3.2 percent (Sharma, 2012). China has a labour force of 815.3 million as of 2010, of which 43 percent are in the attend to sector. Chinas economy has experienced a strong annual GDP growth rate of ten percent in the past five years (Bharat Book Bureau, 2012). The device drivers of growth of the Chinese economy include high rate of savings, abundance of skilled labour, and urban growth. Inward FDI has been a strong driver of economic growth in China. Leading MNCs in every sector have been making inroads in China which has positively impacted the local manufacturers. It encouraged innovation and consequently led to low-cost production. Economic reforms and simplification of tax laws and FDI procedures have made China a very attractive destination for coronation and growth. 2.3 Social China has a population of over 1.3 billion of 16.6 percent are in the age group of 0-14 years. The literacy rate is 92.8 percent and the main religion followed is