Expanding Tasmanian Mountain Water Business in China

Running Head: MARKETING 0
GLOBAL BUSINESS MARKETING
TASMANIA MOUNTAIN WATER

MARKETING 1
Executive Summary
This report outlines the Chinese market demand for bottle water industry. Tasmanian
mountain water is a company need to expand their business in China. As China is a new
country and market for the company, they need to undertake various important aspect in
order to expand their market effectively. In order to do so, Tasmanian needs to research the
market completely. The management needs to use the PESTLE tool for the same. In the first
section of the report, there is a brief overview of the company Tasmanian proving natural
mountain water to the customers. In the next subsequent sections, effective research and
analysis are made in order to acknowledge the market demand of China. The expansion of
Tasmanian mountain water in China will require to gain people perception in align with the
various rules and regulations of that respective nations.
In last, several necessary recommendations also made for the better growth of the
business in China. This will help the company to understand the demanded market and the
economy of China from every corner.

MARKETING 2
Table of Contents
Overview of company................................................................................................................3
Political and Legal environment analysis..................................................................................3
Economic and Financial analysis...............................................................................................4
Social and Cultural Factors........................................................................................................5
Technological and Environment Factors...................................................................................6
Conclusion and Recommendations............................................................................................7
References..................................................................................................................................9

MARKETING 3
Overview of company
The bottled water industry generates more than $700 million revenue annually in
Australia. Tasmanian Mountains Waters comes under beverage sector of Australia. It helps
the customer to get natural and pure form of water. This is also the mission of the
organization to deliver quality water to the customer. The company serve the water in two
sizes of bottles i.e. 5 litres as well as 10 litre containers (Bkucher, 2015). This natural spring
water is formed of natural Calcium, Magnesium and other minerals with having well PH
level 7.6 to 7.8. These water can also be used in household and kitchen. Moreover, due to
their innovative packaging, the customer can store the products of Tasmanian Water for a
long period of time (approximately 5 years). However, as per the company information, the
customer needs to use 10-litre container of water within 2 years to get fresh and good quality
water as by consuming water naturally, it is filtered several time. This makes the water purify
from all aspects. The company is exporting their water bottles from long time; however, there
could be various opportunities for Tasmanian water bottle Company to expand and set-up
their business there. As per the company annual report, it is ascertained that for the new
equipment, the company is planning to invest $2 million including adding of more labour and
workforce to meet the effective demands of the customers (onlytasmania, 2018).
Political and Legal environment analysis
Various legal aspects influence the organization for taking entry into other country
economy. In order to enter China, the company need to scan the political and legal
environment for selling the products and other services of Tasmanian Mountain Waters.
China has an issue of openness, however, there is stable political environment and with this,
the country is also known for its infrastructure and cheap labour (Su, Heshmati, Geng & Yu,
2013). Hence, Tasmanian can easily enter in to the market of China with less political threat.
Along with this, the external demand also increases the growth in China in relation to any
reconstruction in the economy by the communist government. As China has strong political
environment, the country has major reserves in terms of foreign currency (Siriwardana and
Yang, 2008). On a continuous basis, the government in China always focus on the growth of
Chinese industries as they have induced many opportunities there. Moreover, the first and
foremost challenge is linking with their political system as they have openness in their