Opportunities and Threats in the Chinese Market for Launching Danes Coffee

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Global marketing
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Executive summary
The main aim of the paper was to explore opportunities that exist in the Chinese market
and determine whether China has an appealing environment for launching Danes coffee. The
PEST analysis (political, economic, social - cultural and technology factors) provided an
overview of opportunities and threats that exist in Chinese markets. The political and legal
opportunities in China included political stability, appealing market entry regulations, foreign
trade policy and government policies. The economic and financial opportunities included
economic growth rate, high GDP, availability of skilled and unskilled labor, economic trends,
attractive interest rates and consumer disposable income. The social and cultural opportunities
include high population, change in lifestyles, consumer patterns and attractive Hofstede's cultural
dimensions. The technological opportunities included the availability of technologies that can be
accessed by consumers, intellectual property regulations and automation incentives. The threats
and negative trends that exist in Chinese markets include the increase of taxation in the future,
the possibility of inflation and an increase in interest. After weighing opportunities and threats
that exist in the Chinese market, the paper concluded that China has an ideal market for doing
business. However, the research recommended the company to use advertise on available e-
commerce platforms and rebrand products to fit into Chinese cultures.

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Table of Contents
1.0 Introduction................................................................................................................................3
2.0 PEST analysis of China Market................................................................................................3
2.1 Economical and finicial environment analysis......................................................................4
2.1.1 Economical opportunities in China market.....................................................................4
2.2 Political and legal environment analysis................................................................................6
2.2.1 Political and legal opportunities in China market...........................................................6
2.3 Social and cultural environment analysis in China................................................................6
2.3.1 Social and cultural opportunities in China......................................................................6
2.4 Technological environmental analysis...................................................................................7
2.4.1 Technological opportunities in China.............................................................................8
3.0 Conclusion.................................................................................................................................8
4.0 Recomedations...........................................................................................................................9

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1.0 Introduction
International marketing involves launching a new product in foreign countries and
conducting thorough marketing for it to gain a market share. For a product to be launched
effectively in global markets, a macro environment analysis must be conducted for the
determination of market profitability. Through an effective environmental scanning, a company
is able to identify opportunities that will promote a product in the global markets. Therefore, the
paper seeks to conduct macro environment (PEST) analysis of the China market to identify
opportunities and threats in order to determine whether Danes coffee will be successful or not
after its launch.
2.0 PEST analysis of China Market
PEST analysis helps in evaluating how market entry strategy for launching Danes coffee
fits into China markets. Through deep analysis of economic and financial environment of China,
political and legal environment, social, cultural, and technological factors in China, it is easier to
assess the opportunities and threats for promoting Danes Coffee in Chinese market.
2.1 Economical and financial environment analysis
Economical and financial environment analysis determines how a launch of new product
in a market may be affected by economic factors such as international exchange rates, monetary
policies, growth rates taxation, unemployment rates, industry growth, economic trends,
recession, inflation and deflations, interest rates, consumer disposable income, labor costs and
international trade. Economic factors impacts on pricing, revenues and costs of a company or a
product.