International Business in China
13 Pages3958 Words449 Views
Added on 2020-12-29
International Business in China
Added on 2020-12-29
ShareRelated Documents
International Business
Table of Contents(1)INTRODUCTION.......................................................................................................................3(2) Business Drivers behind the company's Expansion into China.................................................3(3) Trade Barriers ............................................................................................................................5(4) Ethical and Social issues to be considered by the Maple Field Milk. .......................................7(5) Cultural preferences to be considered by the business..............................................................8(6) Expansion methods to be chosen by company. .........................................................................9(7) CONCLUSION........................................................................................................................12(8) REFERENCES.........................................................................................................................13
(1)INTRODUCTIONInternational marketing can be defined as the marketing which has been done on the global level.This type of marketing is created by various multinational company on the global level. Presentstudy will focus on Maple field milk which is a high profile SME operating in United Kingdom.The company is going to extend its business in China with their product UHT milk for thechildren aged between 3-11 years. UK dairy sales figures have shown that the sector increased invalue by 4.5% to £10.7bn in the 52 weeks ending 31 December 2017. Fresh milk sales reached avalue of £3.28bn, 4% more than a year earlier(Armstrong and et.al., 2015). China is becoming the most dynamic sector in the global dairy market and the wholeindustry has gradually shifted from scale growth to quality upgrading. The total revenue of thedairy industry of 2017 is 359.041 billion yuan with an increase of 7.85 percent. Report will layfocus on the business drivers behind Maple fields expansion. It will also show the trade barriersthat company can face while expanding. Study focuses on cultural and ethical issue that needs tobe considered by firm while growing its business.(2) Business Drivers behind the company's Expansion into China.Porter's five forces modelHere porter's five forces model will be done to analyse competition of the Maple field company. Threat of New Entrants
Threat of new entrants are very high as small company like maple field which is newly launchedbrand. Because company itself is a new company which is going to launch in market of China.As the company come up with an innovative idea of UHT milk which is to be launched in China.Therefore, company going to face threat from local companies of China. Bargaining Power of Suppliers As the company maple field is dealing in Dairy products with a range of UHT milk of UK.Maple field need to expand their distribution from UK to China. The company being expandingto China make new suppliers attract by their demand of UHT milk. So, the bargaining power ofsuppliers are relatively less. Because company has different suppliers in choice and they havepower of negotiation while dealing with suppliers(Vellas, 2016).Bargaining Power of Buyers Bargaining Power of Buyers are very high because company maple field is entering into Chinesemarket for which they are facing numerous competition with existing companies of China.Customers which are satisfied with existing companies like mengniu dairy which will not shiftfor new company. For such situations consumers have high bargaining power. Threat from Substitute Products The threat of substitute is very high because maple field company serves only UHT milk. Forwhich is easily replaced by regular milk people of China consumes daily. Any local shop willmake available them regular milk. Therefore, UHT milk is having high threat from regular milk.So, the threat of substitute products is very high. Rivalry among the existing playersThe company Maple field is facing competition from several rivalries companies like Mengniudiary. The Maple field will bear a high threat from other companies prevailing in the sameindustry. As the company is newly established in the market of China. Thus, they will facecompetition from existing local companies.Key business driversInfrastructureBusiness like maple field who is expanding their distribution in new market China. Need aninfrastructure for developing and expanding their UTH milk products. The Company need spacefor warehousing, shops, some retail outlets in china to attain their distribution target.
End of preview
Want to access all the pages? Upload your documents or become a member.
Related Documents
International Business - Sample Assignmentlg...
|18
|4931
|263
International Business - UHTlg...
|13
|4043
|109
International Business Assessment - UHT Milk Market in Chinalg...
|9
|1805
|66
Case Study on Quam Milk - SWOT Analysislg...
|22
|4423
|12
The UK SME enters the Chinese marketlg...
|16
|4456
|38
Entering International Business: PESTLE Analysis and Cultural Dimensionslg...
|15
|4461
|62