Market research for wind energy project in China

Running Head: Market Research 1
Market research for wind energy project in China

Market Research 2
Executive summary
The main purpose of the report is to analyze the decisions of expansion of WIND KRAFT as the
company has developed its business in 1997 in Germany. In 20 years, company has got growth
and more than 2000 wind energy projects were implemented by the company in many countries
of the world. The company want to expand its business globally and majorly at that place where
legal, technical and commercial risks are limited. This report has defined that the management
team has assessed China ́s energy market because of its attractive wind energy market. China is
the world leader in generating the wind power in which it has 2,380 gigawatts of access capacity
on land and apart from those 200 gigawatts on the sea. The political and legal factor of the
country is stable which will be good for WIND KRAFT Company to expand its business. The
economic environment of country is effective along with that market of wind energy in china is
huge which can bring huge opportunity for the business of WIND KRAFT to get more success.
The characteristics of Wind Market in China have been emphasized in this report with significant
manner.

Market Research 3
Contents
Executive summary.........................................................................................................................2
General challenges for international management in China............................................................4
Legal, political and economic environment.....................................................................................6
Characteristics of wind energy market in China..............................................................................8
Required goods and services.........................................................................................................10
Final assessment and recommendation to the WIND KRAFT management team.......................11
References......................................................................................................................................12

Market Research 4
General challenges for international management in China
The Chinese marketing has huge advantages as it provides number of opportunities to the
businesses of other countries to expand their business in this country. It is more populated
company and due to an average annual economic growth rate of 9.5% since 1979, the market of
China attracts a number of foreign companies. However, there are many companies that have
failed in China but it has been found that many companies get huge success due to expansion in
China. WIND KRAFT Company was founded in Germany and now it wants to expand its
business in China as developed wind farms from start to finish that offers its expertise at every
phase of projects. Along with that the company has dealt with financing and planning and takes
care of engineering, commissioning, operation and procurement. There can be various
international management challenges that can be the cause of issues for WIND KRAFT at the
time of expanding its business.
Cultural diversity
There are many inhabitants of China that share the same traditions and values, although it is
totally different from some extent between rural and urban areas. The values are highly
appreciated in China such as righteousness, wisdom, loyalty and honesty (Jin, Zhang, Shi and Ju,
2014). The cultural diversity can become the major issue in handling the international
management in china as one should always try to communicate to focus on the integrity of moral
and harmony of the universe (Moran, Abramson and Moran, 2014). However, this kind of
activity is considered as the negative if one use communication to pursue own individual self
interest (Kull and Wacker, 2010).
Guanxi