International Marketing Report: China Market for Architects Services

This report provides a detailed analysis of the international marketing strategies for Australian Architects Limited, aiming to expand its architectural services into the Chinese market. The report begins with an executive summary highlighting the opportunities and challenges, including political, economic, social, technological, environmental, and legal factors. The analysis emphasizes the importance of understanding China's unique market dynamics, including its high GDP, literacy rates, internet usage, and cultural nuances. It recommends a multi-domestic strategy, tailoring products and services to meet the specific needs of the Chinese market. The report evaluates the external environment, focusing on political regulations, economic growth, social trends, and technological advancements. It recommends utilizing social media platforms like WeChat and Sina Weibo for promotions. The report highlights the importance of adapting to local preferences, considering environmental factors, and adhering to e-commerce regulations. The conclusion emphasizes the need for strategic planning and a multi-domestic approach to succeed in the Chinese market, considering the Bartlett and Ghoshal model for international business strategy. The report provides recommendations for effective international marketing, including the use of digital platforms and a strong focus on local responsiveness to achieve success.

Running head: INTERNATIONAL MARKETING
International Marketing
Name of the Student:
Name of University:
Author Note

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Executive Summary
Australian Architects Limited is a company which is supposed to expand the business in China
after having received tender very recently. This is a great opportunity for the company to
actualize its potentials and spread the business in a different geographic location and market.
There external environment in which the company will be operating is different than it was in the
previous and country of origin. The company has about 200 staffs making it a medium to large
sized company. The analysis of the challenges and opportunities suggest that there will be both
in China, which, Australian Architects Limited should pay attention to, in order to establish
themselves and strengthen a customer base in the market. The opportunities for the company
include technological advancements, literacy rates, e commerce usage and economic growth.
Whereas, the challenges will be the political influences and instabilities, legislations and
regulations which the company gets subjected to, on a regular basis. The challenges and
opportunities can be dealt with, by employing Multi domestic strategy, which will help them
offer services and products in the foreign market such as China.

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Opportunities and Challenges
Political Factors
The political factors which play a huge role to determine the political scenario in the
Chinese market is the government regulations which are imposed by the company (Navarro-
García, Arenas-Gaitán & Rondán-Cataluña, 2014). It is quite known that Chinese market often
faces challenges and turmoil which are mainly caused by the regulations and rules which are
brought into force by the Socialist government in China. They often introduce policies which
directly affect domestic and international market and traders. Australian Architect Limited is
intending to expand in China, which may get hindered due to these unsettling events. In China,
one of the strongest influence is by the Communist Party. Australian Architects Limited should
pay attention to this in order to avoid risks and challenges, which might be caused due to the
clash of ideology with the Communist party while introducing goods and services in the Chinese
market. This may as well lead to banning of companies and products from the Chinese market.

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(Image: Political Stability in China)
(Source: Theglobaleconomy.com. 2020)
Economic Factors
China currently has high GDP which is recorded to be highest of all times. It is thought
that China’s GDP will soon be able to outdo the US economy if they continue to grow. This can
be extremely beneficial for Australian Architects Limited as the GDP is rising which means the
prospect for conducting benefit have great potential. There are other economic factors which will
provide great opportunity to Australian Architect Limited, i.e., the cost of labor cost is quite low
alongside purchasing power of consumers being quite high. As a foreign brand, the company can
yield great profits by employing Chinese employees and operating in Chinese market (Navarro-
García, Arenas-Gaitán, J & Rondán-Cataluña, 2014). Newer technologies are cheaper and much
more advanced which can be made use of, while exporting services. However, on the contrary,
China has heavy regulations on import duties which makes it difficult to penetrate the market.
Australian Architects Limited has received the tender with they can enter the market but needs to
take note of the legislations and regulations which they must abide by to avoid risk factors.
Therefore, there are challenges as well as opportunities due to the economic factors.

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(Image: Economic growth rate in China)
(Source: Theglobaleconomy.com. 2020)
Social Factors
Culture plays a very important role and determines social trends and preferences of
people. It is very important to pay close attention to those which develop social preferences of
people. Population and family sizes are social factors which are very important and determine
the market conditions. This dominates the social responses of people and influence behavior of
consumers in the market. The values of a society are usually aligned with the cultural needs
which gives rise to differences from one culture and society and another. One of the very crucial
factors is that China has literacy rate over 90%. The population of the country is, thus aware and
less likely to be influenced easily. People have access to internet and are very much adaptable to
the technological advancements, which Chinese society is enriched with. The behavior of
consumers in Chinese market is quite different from that if the Australian market, which needs to

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be focused on. There are ample opportunities for growth which Australian Architects Limited
needs to analyze and understand.
(Image: Literacy rate in China)
(Source: Theglobaleconomy.com. 2020)
Technological Factors
One of the biggest opportunity for companies to expand their market in China is that
people use internet and are most likely to be found on the social media platforms but not
Facebook. In China, Facebook is not the platform people use to socialize and build network and
thus, the digital marketing of the company should be done through platforms which are most
used in China, such as WeCHat and Sina Weibo, which are the most used platforms by people.
The technological developments are easily adapted by people which suggest that technological
factors usually provide opportunities to businesses rather than challenges (Shtal, et al., 2018).

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The company may choose to offer products and services through online platforms, which will
have wider reach and accessibility because technology is a great opportunity in China.
(Image: Innovation Index in China)
(Source: Theglobaleconomy.com. 2020)
Environmental Factors
China is considered to be one of the most populated countries which makes companies
often make investments to control wastes which are generated to maintain environment standards
(Czinkota & Ronkainen, 2013). This can increase cost of production and bring down margins of
profits. These challenges might become very burdensome for Australian Architects Limited.
Australian Architect Limited should make it a point to reduce levels of pollution Environmental
factors should be taken into consideration while operating in Chinese republic and every other
place of the world.
Legal Factors

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There are severe E-commerce legislations and regulations which companies need to
follow in order to operate in the Chinese market. These would include tax policies, consumer
rights, intellectual property rights and so on. E- Commerce have contributed to the growth of
Chinese economy majorly. Australian Architects Limited can get a great customer base by
developing E-commerce site. China has legalities which are trade related and are subjected to
constant change. There are probabilities that there will be reduction of taxes for important if the
economy reaches absolute capability.
Evaluation and Recommendation
International Marketing Strategies are to be used by companies to adjust to varying
market conditions in different countries. Expansion of business involves more than just selling of
products in a different country (Pan, Chen & Zhan, 2019). In order to sell product in an
international market, a company should employ effective planning, development of strategies
and products, positioning of the company and promotion of the products in the market so that the
target audience are aware of the products in the market. There will be opportunities as well as
challenges, which must be addressed to assert an international presence in the market. The
evaluation of the external environment where Australian Architects Limited will be operating in,
in China was assessed which has given results such as:
1. The political scenario of China can be challenging as it is quite unlike Australia. There
are several regulations and legislations which must be followed by the company in order
to avoid risks. The socialist government in China introduces new rules and regulations for
trade and export, which must be paid attention to, while developing strategies. These
instabilities are of great concern even though there are ample opportunities which
Australian Architects Limited must pay attention to.

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2. The Communist Party is quite influential in China, for which, the company should avoid
tussle by developing strategies and products which do not go against the ideals of the
Communists.
3. The economy of China is growing, which is a positive sign of growth. There are great
prospects for companies in China as the GDP is high and cost of labor is much lower as
compared to other companies in the market.
4. Australian Architects Limited can get newer technologies and innovations which will
help the company grow in the market and affect the business positively in a different
country than Australia especially to make use of the technological advancements which
are best available in China.
5. Social media platforms such as Sina Weibo and WeCHat are to be targeted for
promotions as most of the population are to be found on these social media platforms
unlike Facebook or Instagram for the rest of the world.
6. As pollution is quite high in China, Australian Architects Limited should develop
strategies and initiatives to contribute to the cause of reducing levels of pollution in the
country.
Recommendation
With the widespread of Globalization, even small companies have been able to cross
national borders and conduct business globally (Morschett, Schramm-Klein & Zentes, 2015).
Similarly, Australian Architects Limited, have been able to receive tender for expansion in
China. However, they need to employ effective strategies to make their presence felt in the
industry with the help of International Business Strategy. The framework helps to develop

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the most effective style of operation and strategies. The framework is based on two criteria
which include Local Responsiveness and Global Integration.
According to Bartlett and Ghoshal, the strategy which is adopted by the company
depends on the market forces which lies within. The strategies are to be developed in
accordance with external factors (Rašković Brenčič & Jaklič, 2013). The first type,
International Strategy means low pressure for Global Integration and low pressure for Local
Responsiveness, which are usually employed by small to medium sized companies. The
second type, Global Strategy is followed by the companies who have high pressure for global
integration on one hand while low pressure for local responsiveness for the company. These
are usually followed by companies who sell standardized products in all the companies they
operate in, rather than developing products according to local expectations and
responsiveness (Verbeke & Asmussen, 2016). The third type, Transnational Strategy is
followed by companies which respond to local responsiveness due to high pressure and
global integration as well. When a company follows this strategy, they usually sell their
standardized products as well as offer some adapting to the expectations and needs of the
local market. The last and final type is the multi domestic strategy which is employed by
companies to yield to local responsiveness more than integration of global strategies. This is
often employed by large scale as well as small and medium sized companies to make the
most of the local market by developing products and strategies based on the local
responsiveness.

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Image: The Bartlett and Ghoshal Model for International Business Strategy
(Source: Bartlett & Ghoshal, 2015)
The strategy which can be employed by Australian Architects Limited to be able to
assert the company in the Chinese market is Multi-domestic strategy which will help them
develop strategies, products and services which cater to the needs and expectations of the
Chinese market as they differ from those of the Australian Market. The brand identity will be
built by meeting the expectation of the Chinese market by curated goods and services rather
than offering integrated products which are less likely to be accepted in China due to social
trends and cultural differences.

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References
Bartlett, C. A., & Ghoshal, S. (2015). Organizing for worldwide eff ectiveness: the transnational
solution. In International Business Strategy (pp. 281-296). Routledge.
Czinkota, M. R., & Ronkainen, I. A. (2013). International marketing. Cengage Learning.
Morschett, D., Schramm-Klein, H., & Zentes, J. (2015). Strategic international management (pp.
978-3658078836). Springer.
Navarro-García, A., Arenas-Gaitán, J., & Rondán-Cataluña, F. J. (2014). External environment
and the moderating role of export market orientation. Journal of Business
Research, 67(5), 740-745.
Navarro-García, A., Arenas-Gaitán, J., & Rondán-Cataluña, F. J. (2014). External environment
and the moderating role of export market orientation. Journal of Business
Research, 67(5), 740-745.
Pan, W., Chen, L., & Zhan, W. (2019). PESTEL analysis of construction productivity
enhancement strategies: A case study of three economies. Journal of Management in
Engineering, 35(1), 05018013.
Rašković, M., Brenčič, M. M., & Jaklič, M. (2013). Antecedents and evolution of the Bartlett
and Ghoshal transnational typology. Multinational Business Review.
Shtal, T. V., Buriak, M. M., Amirbekuly, Y., Ukubassova, G. S., Kaskin, T. T., & Toiboldinova,
Z. G. (2018). Methods of analysis of the external environment of business
activities. Revista ESPACIOS, 39(12).