Zusammenfassung der Ressource
Selling into China
- Setting up production in China
- Positive/Benefits
- Lower Labour costs
- Lower costs eg land
- ease of distribution
- Local expertise
- Negeteive
- Reduction in quality
- Ethical and enviromental issues
- Exchange rate fluctuations
- JLR
- Joint venture with Cherry automobile have plans to open a production plant near Shanghai
- Will hae a posotive effect on their global output
- 80% increase in sales
- Mergers/Joint
Ventures
- Positive / Benefits
- Combine experise
- Local knowladge
- Shared risk
- Can be financed through equity (shareholders) and not debt (banks)
- Greater capacity
- Synergies
- Negative
- Shared revenue
- Potential for conflict of stakeholders
- Cultural differences
- Partner may grow to be competitor
- Sales of JLR models in China have risen by 80% in 2012
- JLR agreed to a joint venture with Chery Automobile
- 58% increase in Chinese sales in the second quarter of 2014, boosted by demand for the
recently launched Range Rover Evoque model.
- Increase in local jobs
- Gives a local production base where luxery car market is on the increase
- Starbucks Coffee will launch a joint venture with a Chinese coffee-growing company
- Working with local chinese farmers to produce high quality coffee beans
- Chinese produce helps supply starbucks' global market
- Mergers in China results in large tax benafits
- Exporting into China
- Negative
- High import taxes
- Ethical issues
- Lack of market knowledge
- Positive / Benefits
- Large market
- Growing market
- Spreading risk in different markets
- E-commerce is a prime way of selling into China
- China’s e-commerce market looks set to be worth $296 billion
in 2013
- online luxury sales will be worth an estimated $27 billion this year
- Advantages of E-commerce
- No limitations to geographical sales
- Reduce in costs that can be past on to consumers giving a commpetative advantage
- This can be in the form of reduced personal/workers or the fact that a physical store is not needed in an e-commerce busniess
- Consumers have more convenient shopping and can use a 'search' box to narrow down products
- Travel time and cost is eliminated for the consumer
- Remains open with 24 hour access
- Disadvantages of E-commerce
- Many goods can not be pruchased online
- E-commerce doesnt allow consumers to experience the product
- store reliability can be an issue and consumers may not want to risk using e-commerce