Report on Internet Business and Globalization
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Added on 2020-04-21
Report on Internet Business and Globalization
Added on 2020-04-21
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Running head: INTERNET BUSINESS AND GLOBALIZATIONInternet Business and GlobalizationName of the StudentName of the UniversityAuthor Note
1INTERNET BUSINESS AND GLOBALIZATIONIntroductionThe report is about the battery market industry in China and how it provides a lucrativemarket for the concerned small business named Harry Ltd. The battery operated industry inChina is being dominated by the various foreign-funded organizations (Liu et al. 2017). Thisreport would explain the PESTEL factors that impact the battery industry in China. The viabilityof the battery manufacturing in China would be discussed and evaluation of the alternate entrymodes would be done. Aims and ObjectivesThe aims and objectives of the report would be-Determine the battery industry in China Check whether the Chinese market is lucrative or notDetermine if the concerned company would manufacture battery in China or adoptalternative entry methodsEvaluation of the different alternative entry Two important PESTEL factors impacting battery industry in ChinaChina is considered as one of the most attractive locations for doing business. It isconsidered as one of the strongest powers and this is the reason that it has boosted internationalbusiness (Zeng, Li and Liu 2015). The two PESTEL factors for battery industry in China areexplored as follows-Economic factors- China have transformed itself into market-oriented form that haspositively impacted the economy of the country. The exchange rate of China is higher
2INTERNET BUSINESS AND GLOBALIZATIONand hence there is greater flexibility of the exchange rates of the country (McKinnon andSchnabl 2014). If the firm establishes the battery industry in China, then its exportswould be more expensive because of the strong Yuan exchange rates. The batteryindustry is likely to be impacted by the establishment of the diplomatic connectionbetween China and Singapore (Zeng, Li and Liu 2015). There is lower cost of acquisitionof the purchasing mining assets from the cobalt to lithium supply chain and hence there issubsequent reduction of the costs (Silberglitt, Bartis and Brady 2014). Technological factors- Chinese Governments have taken sufficient initiatives to supplybatteries to the different electric cars such as Tesla (Bohnsack, Pinkse and Kolk 2014).There are forecasts that there would be proliferation of the electric vehicles and powercompanies in the coming years. The government of the country is also aimed forincreasing the dominant market share of the battery industry (Zeng, Li and Liu 2015).There has been huge focus on the lithium-ion batteries, which is becoming a hugelypopular industry in the year 2020 and also beyond that. The technological innovationwould ensure that if the company is set up in China, then it would be highly benefittedfrom the improved technological framework in the country (Bohnsack, Pinkse and Kolk2014). The country also aims to acquire a foreign battery technology in which there isoverall Chinese control as well as ownership. Analysis of viability of battery manufacturing in ChinaThe battery manufacturing industry in China makes up around 55% of the global lithium-ion battery production in China. The country has been encouraging for clean energy such as solarenergy, coal and wind energy which would help the company to challenge the global climate
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