A Better Approach to Chinas Markets

Introduction China’s market is complex and therefore needs an appropriate entry strategy to be able to succeed. Multinational corporations which enter the country with mono-dimensional mindset, ignoring China’s multi-faceted diversity, may fail to capture China’s market.Advertising We will write a custom research paper sample on A Better Approach to China’s Markets specifically for you for only $16.05 $11/page Learn More China’s market economy has expanded opportunities for doing business in the country and therefore many companies both domestic and international are racing to establish themselves in the market (Ghemawat 2007, 54). China’s market today China’s market environment presents unique complexity with significant differences across the various regions within the country. It has over 800 cities with 200 of them having populations exceeding 1 million. There is a significant variation between Chinaâ €™s cities and towns as they grow at different rates in diverse directions. China’s high economic growth, large size as well as diversity make it to be very unpredictable (Tse 2007). China’s market is also dynamic as it forms a manufacturing hub for many industries in different sectors. The economy has become dynamic private-sector led since its market liberalization integrating diverse industries and service companies (Fung 2004, 32). China’s market is very challenging for companies entering the country. Its large population consists of diverse cultures and demographics which influence their lifestyle, which includes spending power and how they react to certain products in market. Consumer attitudes and demographic makeups vary across cities and towns. The over 800 cities presents different demographics as well as consumer attitudes. Besides, they have different growth rates which further define China’s markets. Cluster Propositions Most corporations that enter China’s market tend to categorize Chinese cities depending on their market or demographic characteristics to enable them determine areas which best suit their particular needs (Ho 2005). Segmenting industrial markets could be challenging due to the greater complexity in industrial products, buying processes as well as buying criteria.Advertising Looking for research paper on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Clustering/segmentation is further complicated by complementary products, contracting as well as financing. In clustering, it is important to identify the most important differences that exist among current as well as potential consumers. Thus, most companies that enter China tend to group cities in terms of geographic closeness, demographic relationships, trade and economic outlook as well as similarity in industry composition and government policies. Atsmon and Magnl (2009) report th at consumer research as well as work with both domestic and multinational companies reveal that it is more beneficial to cluster Chinese markets in terms of geographical locations. Each cluster of cities located within a radius of 300 km represents a minimum of 1% of China’s GDP. Besides, clustered cities in China have close trade relationships as well as common economic outlooks. Kotler’s Bottom-up Approach Kotler’s model supports demographic clustering where customer data are analyzed to provide an understanding of the similarities that make up certain demographics so as to be able to know whether they have similar needs/characteristics. Companies have to understand the similarities in customers’ purchasing power or attitude. Due to modern market complexities, Webster (1991, 64) suggests that companies need to adopt Bonoma Shapiro’s model which proposes that markets should be clustered according to demographics, buyers’ personal character istics, operating variables as well as purchasing approaches (Bonoma Shapiro 1984, 106). Implications Any company entering China must consider its strategy and structure in relation to the expected competition in Chinese market. It has to modify its structure and adopt strategies which will enable it succeed in the complex and diverse Chinese markets (Yip. 2002, 101). Again, it must consider the factor conditions which are likely to influence its business processes and growth, and demand conditions in the potential market. Finally, it has to establish whether related and supporting industries exist in the potential market. Supporting and related industries enhances the operations of the firm and also provides an opportunity for partnerships and ventures, therefore allowing companies to achieve economies of scale (Cheston Kalafatis 1997, 36).Advertising We will write a custom research paper sample on A Better Approach to China’s Markets specifically for you fo r only $16.05 $11/page Learn More Cluster benefits Clustering markets allow companies that enter Chinese markets to define and prioritize their target cities. This means that the company is able to understand cities or demographics which the products/services that it offers would provide the greatest economic value to (Dubar McDonald 2004, 37). Besides, the company is able to identify the particular features which best suits its business processes. This also means that the company is able to define its competitive advantages in the market clusters identified allowing it to choose one which would support its vision and growth. Clustering allows companies to adopt efficient venturing strategies. As such, companies entering Chinese markets need to have the capacity to define China’s markets in a way that gives them a better view of the firms to partner with. Strategic ventures in China enable companies to cut costs by establishing cluster-based sales forces, supp ly chains as well as distribution channels while covering large geographic areas (Atsmon and Magnl 2009). Again, customer segmentation allows companies to acquire detailed profile of customers who are interested in the products/services they offer (Chacko 2004, 4; Gross 1995, 28). They are able to group cities according to consumer as well as demographic data which are relevant to their businesses. Given the close trade relationships that exist between companies in one geographic area, companies are able to benefit from detailed shared customer’s profile. Basic Clusters Different clusters, different consumers Atsmon and Magnl (2009) believe that understanding diverse preferences as well as attitudes among consumers across clusters is very important. In China, Central and Shanghai have comparable populations, and proportions of locals and immigrants.Advertising Looking for research paper on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More However, these characteristics create significant differences between the two clusters. While people in Shanghai prefer well-known brands, have less confidence about the future and therefore tend to prioritise savings, people in Central are the exact opposite of the people of Shanghai (Atsmon Magnl 2009). Central residents prefer the national TV to local TV meaning that advertisements targeting them should be done on National TV. Established markets vs. up-and-coming markets Hangzhou is categorized as an established market due to its large population characterized by many middle class and above families and individuals. However, the growth in middle class population in this city is expected to be modest as compared to that Hefei. It is expected that by 2015, Hefei will have achieved significant growth in the middle class population. This means that a company planning to enter the Chinese market should explore opportunities in the Hefei market since there are still untapped opportun ities in this region. Three-hour drive, worlds apart Despite the close proximities between cities or regions, demographic characteristics may differ. Many companies assume that cities in one region have consumers with similar characteristics, which is wrong. Guangzhou and Shenzhen, which almost overlap one another, have different population characteristics. Shenzhen is mostly dominated by young immigrants who have a different lifestyle from that of the older majority population in Guangzhou. Conclusion Any company entering Chinese markets need to segment the markets into clusters and priorities. They must group Chinese cities according to their demographic as well as most relevant consumer data. In addition, their strategies for entering the Chinese markets have to be dynamic and adaptive to be able survive in the constantly evolving China market. In other words, they need to adopt a global strategy. Reference List Atsmon, Y. and Magnal, M., 2009. A better approach to China’s markets. Harvard Business Review, 31. Bonoma, T. and Shapiro, B., 1984. Segmenting industrial markets. Virginia: Lexington Publishers. Chacko, J. M., 2004, Targeting Asian-Indian American consumers. Journal of International Business and Cultural Studies, pp 1-7. Cheston, V. and Kalafatis, S., 1997. Normative models and practical applications of segmentation in business markets. Industrial Marketing Management, 26. Dubar, I., and McDonald, M., 2004. Market segmentation: How to do it, how to profit from it. Oxford: A Butterworth-Heinemann. Fung, K. C., 2004. Trade and investment: China, the United States, and the Asia-Pacific economies. Santa Cruz: University of California Press. Ghemawat, P., 2007. Redefining global strategy: Crossing borders in a world where differences still matters. Boston, Massachusetts: McGraw-Hill. Gross, A., 1995. China market entry strategies. Bethseda: Pacific Bridge Medical. Ho, D., 2005. Entering the Chinese market. Bloomberg Businessweek. [Online] availa ble at  https://www.bloomberg.com/europe . Tse, E., 2007. Context and complexity: Success in China requires approach for diverse market. [Online] available at  https://www.strategy-business.com/article/07304?pg=all . Webster, F., 1991. Industrial marketing strategy, 3rd Ed. New York: John Wiley Sons. Yip, G. 2002. Total global strategy II: Managing for world wide advantage. Englewood Cliffs, New Jersey: Prentice Hall. This research paper on A Better Approach to China’s Markets was written and submitted by user Abr1l to help you with your own studies. You are free to use it for research and reference purposes in order to write your own paper; however, you must cite it accordingly. You can donate your paper here.

Csr of Volkswagen Essays

Csr of Volkswagen Essays Csr of Volkswagen Essay Csr of Volkswagen Essay The direction of the company’s corporate societal marketing efforts Corporate social responsibility (CSR) can be defined as the business practices that are based on ethical values, in order to meet the legal requirements, as well as respect for people, communities, marketplace and environment (what is corporate social responsibility, 2002). They are many different ways to determinate CSR, but the main purpose of the CSR can be explain as the management of stakeholder are giving concern toward the responsibility and the irresponsibility acts that related to the environmental, ethical and social phenomena in a way that create corporate benefit (Vaaland et al. , 2008, p. 931). Therefore, instant of making profits, the company also holds the responsibility to the impact of their production toward the people and the environment as well as the economy. As an international active vehicle manufacturer, Volkswagen took the sustainable environment protection as part of their responsibility. These responsibilities start from doing the future technology research, development and manufacturer of their products. For example, Volkswagen will check all their production areas in order to achieve the greatest possible environmental capability. (Das Auto, 2011). The increased of the identification and loyalty with a company due to the CSR activities (Bhattacharya and Sen, 2004; Curras-Perez et al. 2009; Marin et al. , 2009; Rego et al, 2010), indicates that CSR has been increasingly perceived as a strategy of corporate concern for deepening both employee and consumer commitment and relationships with organizations over time. This will not only increase the customers’ brand loyalty, but also the employees’ loyalty toward the company. The CSR provided for the employees’ safety such as hazardous substances at the workplace mig ht cause the serious health problem to the employees concerned. In order to protect the employees, the investigations of the hazardous substances in the air at the workplaces are required. The main measurement of hazardous substances involved the measurement of welding smoke in bodywork manufacturer, coolant lubricants in metal processing, solvent measurements in the paint shop and diesel engine emissions in halls where vehicles are drive. The safety Chemistry Measuring of Volkswagen AG has been approve according to the ISO 17025 since 1999 and hus bears the quality seal to assess the workplace related situation of hazardous substances in the air (Das Auto, 2011). The accreditation of the Safety Chemistry measuring point is used to make sure the sustainable health and safety at work. The integrate of ethic and corporate social responsibility (CSR) into organization strategy (Sharp and Zaitman, 2010), can be consider as a key aspect for the technology intensive firm, as innovation have been prove that they is a influence of CSR toward the organiza tion performance (McWilliams and Siegel, 2000). The effect of this integrate will create human capital, and other intangibles such as reputation as well as culture. (Surroca et al, 2010). In order to compete in a rapidly changing business world, more and more organization has become socially responsibility to increase their reputation and brand image. Volkswagen is giving financial contribution to enhance its corporate social responsibility to South Africa. Firstly, Volkswagen are giving a support in the fight against AIDS by provide two million euro for the new youth centre at its site in Uitenhage. The centre is part of the LoveLife Foundation, is the main focus of this centre is fight against AIDS. The LoveLife programmers’ are running by a group of voluntary national youth welfare organization Groundbreaks (Das Auto-, 2011). Secondly, Volkswagen offer education and provide protection for the disadvantaged children. â€Å"Eine Stunde fur die Zukunft† and associated initiative â€Å"A chance to play† are both street children project that are successfully helping the disadvantage children as well as young adult. The success of both of the programmed are due to the contribute of the Volkswagen staff and Volkswagen Works Council. The programmed â€Å"Eine Stunde Fur die Zukunft† was created to raise fund for the disadvantaged children and young adult in the area of Volkswagen plant sites all around the world (Das Auto, 2011). Through having both of the projects above, the disadvantage children are getting the chances to receive the protection and opportunity to have an education in order to developed their professional prospects.

What evidence do the narrative accounts provide for the diversity of Essay

What evidence do the narrative accounts provide for the diversity of early Christianity - Essay Example The idea of being a shepherd was considered hazardous, tiring, and demanding, but Jesus considered himself as the good Shepherd. According to John 10:11, a shepherd will lay down his life for the sheep while 1st Samuel 17: 34-35 asserts that Jesus is like spirit since he lays down his life for mankind. In addition, Jesus interaction with the Samaritan woman and subsequent telling the Priests that tax collectors and prostitutes would go to heaven drew a lot of controversy among early Christianity. Jesus taught the scriptures privately to a woman which was against the prevailing law and the woman agreed to tell the news to the town. Jesus demonstrated the he was a gift from God by telling a Samaritan woman to give him water according to John 4: 7-27. In the book of Matthew 2:1; 14, 21, Jesus was born in Bethlehem and he subsequently departed to Egypt and finally went to the land of Israel. On the other hand, Luke 1:26;2:1-7, the gospel is clear that Angel Gabriel was sent from God to c ity of Nazareth to Virgin Mary, but the gospel still asserts that Joseph also went from city of Nazareth to Judea in Bethlehem (Hurtado 109). Jesus healing parables attracted a lot of controversy among his followers.