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Essay / Research Paper Abstract
This 10 page paper examines China as a potential new market for an existing brand of beer. The microenvironment is examined using a PEST Analysis to look at the political, economic, social and technological influences. The industry in China and the impact on the firm is then considered with the use of Porters Five Forces model, and the last section of the paper discusses potential modes of entry. The bibliography cites 6 sources.
Page Count:
10 pages (~225 words per page)
File: TS14_TEchbeer.rtf
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Unformatted sample text from the term paper:
OF ENTRY 11 1. Introduction The Chinese market is forecast at becoming the world largest single market with
a high potential for growth as the country developed further. The beer market in the country is already the largest in the world, taking over from the US in 2002
(Tiverton-Brown, 2002). This makes the market very attractive as the size and potential growth are two large pull factors (Thompson, 2007). To consider if whether or not the potential
of the market could be realised by the Czech brand Budvar, brewed by a brewery owned by Budweiser, and sold as Czechvar in the US and Canada, will be viable
in China the market and its condition need to be examined. To undertake this the market itself has to be considered; first in terms of the general market and then
to look at the issues that any firm/brand will need to deal with if they look at entering the market, a tool such as a PEST analysis can be valuable
here. It is important to look at the macro environment before looking at the industry in more detail, using Porters Five Forces Analysis1 and considering entry methods. 2. China; PEST
2.1 Political Influences Commerce in China has a long history, but internal unrest and disputes lead to many changes that still have an
ipact todaY, following the Second World War the communist took over the country under Mao Zedong and the country was then run as a dictatorship (CIA, 2009). The result of
this was that everyday lives of the Chinese were strictly controlled (Wong, 1998). The controls regulated work, wages and goods were no market forces at all, there was also a
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