External Environmental Analysis of Chinese Retail Sector for Wesfarmers

Running head: GLOBAL MARKETING
Global Marketing
Name of the Student
Name of the University
Author Note

1GLOBAL MARKETING
Table of Contents
Company Profile..............................................................................................................................2
External environmental analysis of the Chinese retail Sector.........................................................2
Political factor..............................................................................................................................3
Economic factors.........................................................................................................................3
Social factors...............................................................................................................................4
Technological factors...................................................................................................................5
Legal Factors...............................................................................................................................5
Environmental factor...................................................................................................................5
Consumer market Assessment.........................................................................................................6
Market Segmentation of China....................................................................................................6
Demographic segmentation.........................................................................................................6
Psychographic and Behavioral segmentation..............................................................................6
New venture proposal......................................................................................................................7
Reference list...................................................................................................................................8

2GLOBAL MARKETING
Company Profile
The Wesfarmers limited is referred to one of the most well-known conglomerates in
Australia that has it’s headquartered in Perth, Western Australia. The company is currently the
largest retail sector in Australia when it comes to revenue, Apart from Australia, the organization
is also dominating the retail market of New Zealand, India, New Caledonia, United Kingdom,
Hong Kong, Indonesia, China, Bermuda and Singapore. Wesfarmers, In addition to its
supermarket chain in Australia and New Zealand, the company is also the largest liquor
takeaway retailer as well as the largest hotel as well as gaming poker machine in Australia. Other
business of the company includes chemicals, fertilizers, coal mining and industrial and safety
products (Akbar and Ahsan 2014). The annual revenue of the company in the year 2017 is 68.44
Australian dollars and the total operating income of Wesfarmers in the same year is 2.87 billion
Australian dollars in the same year (Wesfarmers 2018). According to the official report of the
company in the year 2018, the total number of employees working in the organization includes
223,000 including its outlets in New Zealand (Shauki 2016). In spite of being a highly popular
company, Wesfarmers is evidencing high competition from its competitors as well as new
entries. The chief reason for the high competition is that the western retail sector is highly
saturated.
External environmental analysis of the Chinese retail Sector
Considering the fact the Wesfarmers organization is planning to establish their business
in the Chinese retail sector, it is highly crucial for the management to access its external
environment in order to understand the specific requirements of the Chinese consumers. In order