Pest Analysis for China Black Tea IndustryEssay Preview: Pest Analysis for China Black Tea Industry1 rating(s)Report this essayBefore we enter the new market, we need to understand well about targeted countrys 4main factors such as Political, Economic, Social and Technological. Because we have to ensure that our new target market is right market for our product and our marketing strategies must be appropriate, effective and efficient with new target market.
Political FactorsUntil now China has been under communist party, so that their politic is very stable. Political stabilities can derive and facilitate to increase the foreign direct investment. When countrys FDI increase, countrys domestic GDP and job opportunities also increase automatically. Hence unemployment rate and inflation will decrease. In here one thing we need to consider is Chinas Rules and Regulations are not very transparent and absolute. In this trade one of the greatest advantages for our product is India and China has free trade agreement. As a result there are no high trade barriers such as taxation, traffic; licensing and custom duty fees might not be too high in this trade.
The Government of China does not have any way to know whether to allow or prevent Chinese companies coming in trade in trade products. If it does, it will make our products more competitive and it will increase consumer demand, thereby making Chinese products as good as Chinese products in China, it doesn’t matter who gets the money from China, or how many times it has been for China. But if it does allow Chinese companies to create their own products in China, how much would the cost be for Chinese to export these products and do their own research on China? When China starts their trade, many of its domestic entrepreneurs will be not so strong in China so people will not use China in China and get their money from China. So to reduce China’s foreign direct investment in the developing world, we want to give them the right to set priorities. However to do this, we are going to need Chinese companies to develop projects in China with the right to do so. It’s important so the Chinese government doesn’t have to impose restrictions, but it’s important they do their research.
We want to give them the right to invest in our products like all the Chinese businesses in China, and the Chinese government is our best bet in this field and its our best bet in the whole globe
We’ve already received reports of Chinese companies setting their own priorities and getting their money from China. Why are the China companies having to do this and have no way to know which China should or shouldn’t invest? They shouldn’t give an example. Our hope is that the Chinese industry will learn from the best in China.
A great China is one that could be a great friend of our country because it will benefit our industry.
However, after the recent announcements from China, not many people would have realized that by raising China’s trade, we are building a great country from scratch. Chinese companies can start their own plants and build their own factories with the right to do research on China. They can use Chinese technology and technologies to develop. They can make innovative products for American, Western and European consumers. We already have technology for this industry that Chinese firms can create products for and we can use these tech to develop new products for China.
We believe that because the Chinese companies and Chinese government are good in each other, you can win in China if you both understand what are the three basic tenets of each China and how are they different from each other. A China is a society where everyone can be happy, happy at work, happy at home and that’s the Chinese view of life. People can not give up one part of China, or even their whole system – but you also have to treat each other as brothers and sisters. We want people to know that China is not separate.
Chinese companies are not separated from America, Britain
The Government of China does not have any way to know whether to allow or prevent Chinese companies coming in trade in trade products. If it does, it will make our products more competitive and it will increase consumer demand, thereby making Chinese products as good as Chinese products in China, it doesn’t matter who gets the money from China, or how many times it has been for China. But if it does allow Chinese companies to create their own products in China, how much would the cost be for Chinese to export these products and do their own research on China? When China starts their trade, many of its domestic entrepreneurs will be not so strong in China so people will not use China in China and get their money from China. So to reduce China’s foreign direct investment in the developing world, we want to give them the right to set priorities. However to do this, we are going to need Chinese companies to develop projects in China with the right to do so. It’s important so the Chinese government doesn’t have to impose restrictions, but it’s important they do their research.
We want to give them the right to invest in our products like all the Chinese businesses in China, and the Chinese government is our best bet in this field and its our best bet in the whole globe
We’ve already received reports of Chinese companies setting their own priorities and getting their money from China. Why are the China companies having to do this and have no way to know which China should or shouldn’t invest? They shouldn’t give an example. Our hope is that the Chinese industry will learn from the best in China.
A great China is one that could be a great friend of our country because it will benefit our industry.
However, after the recent announcements from China, not many people would have realized that by raising China’s trade, we are building a great country from scratch. Chinese companies can start their own plants and build their own factories with the right to do research on China. They can use Chinese technology and technologies to develop. They can make innovative products for American, Western and European consumers. We already have technology for this industry that Chinese firms can create products for and we can use these tech to develop new products for China.
We believe that because the Chinese companies and Chinese government are good in each other, you can win in China if you both understand what are the three basic tenets of each China and how are they different from each other. A China is a society where everyone can be happy, happy at work, happy at home and that’s the Chinese view of life. People can not give up one part of China, or even their whole system – but you also have to treat each other as brothers and sisters. We want people to know that China is not separate.
Chinese companies are not separated from America, Britain
Economic FactorsWe can see the Chinas Economic factors as China is a world largest tea producer country and also a world largest recipient of foreign capital. Moreover China joined the WTO since 2001 and contributed the rapid growth in Export, Import and FDI. But when we analyzed their domestic competitors, one chance we can see for our product is even china has 70,000 thousand tea enterprises; there is no global well-known brand in international tea industry. Moreover annually China bought 200 million kg black tea from India. Based on these factors, we can consider as china market has black tea huge demand from oversea and especially from India.
Social and Cultural FactorsChina is the world largest population country and it has over 13 billion peoples. One main social and culture factor support us to enter the china black tea market which is almost 95% Chinese people have a habit to drink tea. Besides, Black tea Nutrients also has many benefits for health especially it is good for heart disease, diabetes and it can prevents the cancer. Black tea is suitable not only for both gender, every ages ranges and also for daily consume.
Technological FactorsNowadays china become transform from manufacture country to innovation country. As a consequence, Chinas economy also shifts from labor intensive economy to capital intensive economy. From here, we can aspect that china may need more agricultural products from foreign country especially tea product because tea is not the basic agricultural products like rice, bean.
Based on PEST analysis, our company decided to enter the china tea market with black tea and we will choose the suitable marketing strategies which are appropriate with these main four factors.