Market Opportunities and Risks in Chinese and South African Pharmaceutical Industry

Running head: GLOBAL BUSINESS
AUSMED
Global Business
9/8/2019

GLOBAL BUSINESS 1
Executive Summary
The aim of this report is to present the discussion in terms of market opportunities and market
risk that can be experienced by AUSMED Company while expanding the business in the
Chinese or South African market. The analysis has raised the argument that Chinese market
offer increased and better benefits for AUSMED Company to increase its market share
because the government is regularly introducing different healthcare reforms in the
Pharmaceutical industry for inviting foreign business to expand in the market. Besides this,
the increasing demand for the health care medication is offering chance of growth to the
company. On the other hand, the uncontrollable corruption, violence, and mismanagement of
political infrastructure in the South African Pharmaceutical Industry can raise number of
challenges for the company. Hence, the report has suggested company to expand in the
Chinese Pharmaceutical Industry through the Partnership as the market entry strategy.

GLOBAL BUSINESS 2
Table of Contents
Executive Summary...................................................................................................................1
Introduction................................................................................................................................3
Overview of Business............................................................................................................3
Overview of China.................................................................................................................3
Overview of South Africa......................................................................................................4
Market Opportunities in China...............................................................................................4
Market Opportunities in South Africa....................................................................................6
Risk in China..........................................................................................................................6
Risk in South Africa...............................................................................................................7
Selection of Best Market and Justification.............................................................................8
Market Entry Strategy............................................................................................................9
Conclusion..................................................................................................................................9
References................................................................................................................................11

GLOBAL BUSINESS 3
Introduction
Global business refers to the international trade where a business expands its operations
across the world. With the quick advancement in the technology and expanding international
trade, businesses are incentivized for vending services and products in the foreign market.
Operating the business in international or global level supports companies to expand their
share in the market, decrease costs, and be competitive (Peng, 2016). The intent of this paper
is to evaluate the market opportunities and risk that are available in the Pharmaceutical
industry of China and South Africa such that AUSMED can plan to expand its operations in
any of the one market. The paper is based on identifying the best market where company can
expand its operations and attain success. In the end, the paper is also raising the argument
related to what type of market entry strategy can be adopted by AUSMED Company to take
entry in the selected market.
Overview of Business
AUSMED is an Australian Pharmaceutical Company involved in the manufacturing of the
drugs has developed in the last 10 years. It presently employs around 60 staff and has yearly
turnover of around AUD 30 million. But, the company has not yet expanded in any other
market due to which its market share is limited. Hence, this paper is being prepared in order
to identify the best market place for the company to expand its operations.
Overview of China
China is officially called as the People’s Republic of China is th4e nation established in the
East Asia and the most populated nation in the world with over 1.404 billion population
(Shambaugh, 2013). In terms of total area, the country is called as the third or fourth largest
nation. Even, the pharmaceutical industry of the country is considered as the leading