Sale Manual Report-Samsung CellphoneEssay Preview: Sale Manual Report-Samsung CellphoneReport this essaySale Manual Report —Samsung cell phoneExecutive SummaryOur company, Samsung Electronics Co Ltd, is one of the worldЎЇs largest microchip makers. We are going to choose China Unicom as our prospect to expand our Chinese market and contribute to our companyЎЇs overall growth. As our companyЎЇs representative, we prepare to use good sale skills to sell our product. Our sales manual includes: the overall growth of China, company profile, strategies and skills to develop sale presentation.
Cellular phone market in ChinaUntil now, China is the worlds largest and fastest-growing mobile phone market. According to the Ministry of Information, there is up to 344.07 million mobile users at the end of February, which is about 25% of its total population in China. Depends on Chinese rapid growing economic, there still has a large potential market, and it is expected to reach 500 million mobile users by 2007. At present, four to five million new subscribers are added each month. ThatЎЇs a significant growth and theres no such growth in the world like this for mobile users. In China, mobile phones with color displays and camera phones continued to attract buyers. GSM sales accounted for 85% of total sales due to competitive pricing and a focus on the underdeveloped market by China Mobile.
Overall information of ChinaGeographic and demographic factors:China is located in Eastern Asia, bordering the East China Sea, Korea Bay, Yellow Sea, and South China Sea, between North Korea and Vietnam. The total population of China around 1,298,847,624 and among these people, there are 22.3% aged 1-14, 70.3% aged 15-64 and 7.5% 65years and over.
Governmental Factors:Peoples Republic of China is a communist country, which has 23 provinces, 5 autonomous regions, and 4 municipalities. Its capital is Beijing. China is a country of many political parties. Apart from the Communist Party of China, which is in power, China has eight non-Communist parties. Anniversary of the Founding of the Peoples Republic of China, 1 October (1949) Chinese Flag is red with a large yellow five-pointed star and four smaller yellow five-pointed stars (arranged in a vertical arc toward the middle of the flag) in the upper hoist-side corner.
Economic and commercial factors:The Chinese currency is yuan. The economy of China continued to perform well. Chinas GDP in 2002 reached US$1237.09 billion, an increase of 8.0 percent in comparable prices over the previous year, and 0.7 percentage points faster, due to our continued stimulation of domestic demand and our unswerving implementation of a proactive fiscal policy and a stable monetary policy. The value-added of the second industry is US$640.09 billion, with a growth rate of 9.9 percent. The growth rates of primary and the tertiary industry are approximately equal to that of 2001, at 2.9 percent and 7.3 percent respectively.
The exchange rate of renmimbi (RMB) against foreign currency kept stable. By the end of 2002, 1 US dollar was equal to 8.2773 RMB. By 26 August 2003, 1 US dollar was equal to 8.2768, 7 RMB basic points appreciation, compared with the first day of 2003.
The investment in fixed assets enjoyed a relatively rapid growth. Such investment in fixed assets for the whole economy reached US$521.93 billion in 2002, which was 16.1 percent up over the previous year, and the highest rate since 1996.
Consumer demand went up steadily, with the continued improvement of the living standard of the people. Total retail sales of consumer goods were US$494.30 billion, with a growth of 8.8 percent year-on-year. When the price factor is included, the growth rate would reach 10.2 percent. The living standards of people in towns and villages were improved steadily. The annual per capita governable income for the residents in cities and towns was US$930.70, with showing a real growth of 13.4 percent year-on-year. The per capita net income of residents in rural areas was US$285.87, with a real growth of 8.5 percent year-on-year, of which the per capita net income of cash was US$299.16, with a real growth of 4.8 percent year-on-year. The rates of growth income of these two groups are higher than that of 2001. The Engel coefficient of residents in urban and rural areas were 37.7 percent and 46.2 percent respectively, 0.2 and 1.5 percentage points lower, respectively, than last year.
In the first quarter of 2003, the major economic indicators reached the highest level since 1995. GDP grew by 9.9 percent. In the second quarter, the negative impact of the severe acute respiratory syndrome (SARS) outbreak on Chinas economy emerged. However, the robust growth in the first quarter balanced the impact. Economic growth in the first half of 2003 remain fast, up by 8.2 percent (YOY), 0.4 percentage point higher than in the first half of 2002.
China formally joined the WTO in December 2001. As part of this far-reaching trade liberalization agreement, China agreed to lower tariffs and abolish market impediments. Chinese and foreign businessmen, for example, gained the right to import and export on their own, and to sell their products without going through a government middleman. By 2005, average tariff rates on key U.S. agricultural exports will drop from 31% to 14% and on industrial products from 25% to 9%. The agreement also opens up new opportunities for U.S. providers of services like banking, insurance, and telecommunications. China has made significant progress implementing its WTO commitments, but serious concerns remain, particularly in the realm of intellectual property rights protection.
Foreign InvestmentChinaЎЇs investment climate has changed dramatically in 24 years of reform. In the early 1980s, China restricted foreign investments to export-oriented operations and required foreign investors to form joint-venture partnerships with Chinese firms. Foreign direct investment (FDI) grew quickly during the 1980s, but stalled in late 1989 in the aftermath of Tiananmen. In response, the government introduced legislation and regulations designed to encourage foreigners to invest in high-priority sectors and regions. Since the early 1990s, China has allowed foreign investors to manufacture and sell a wide range of goods on the domestic market, and authorized the establishment of wholly foreign-owned enterprises, now the preferred form of FDI. However, the Chinese governmentЎЇs
FDI environment continues to remain volatile; only one major country, South Korea, has sufficient FDI to meet ChinaЎЇs capital requirements. Currently, a wide range of FDI requirements and restrictions exist, including visa programs and international trade restrictions, the introduction of non-resident investors that are prohibited by existing laws, and the regulation of foreign investment in infrastructure projects. Several government agencies impose FDI restrictions, and many large firms fail to meet their capital requirements. The governmentЎЇs fiscal and regulatory program has also remained largely opaque in recent years, which reflects the fact that some of the major FDI programs in the governmentЎЇs budget, including the National Industrial Policy Research Program in 2011 and the China Development Bank program, are closed to the public. As a result, the governmentЎЇs reform program will have limited time to increase its FDI and foreign direct investment efforts, and foreign investors will need to obtain an annual capital and regulatory approval. As a result, the Government currently is unable to introduce foreign direct investment programs over time. In the future, the Government will attempt to increase the number of FDI grants from the previous year to meet financing and other FDI standards set forth in the fiscal year 2013 budget. We expect that the Government’s reforms will have limited use once the reforms in current law become law. While reform of FDI programs might provide new opportunities for the GovernmentЎЇs financing and regulatory policy, they will also produce substantial uncertainty concerning FDI policies across the economy, and even government policymaking at many levels. In light of the significant limitations and risks of FDI programs in China, we believe it is imperative to establish a system of fair and equitable FDI that will address such barriers. We are currently conducting a survey with over half a million people in Shanghai to gauge the degree to which FDI programs have been successful or at times failed. We found that 40 percent of participants have achieved and maintained substantial FDI during the survey, but only 15 percent have been successful or have been consistently successful in the past three years, as compared with 28 percent in the past year. Similarly, in two surveys, the only group of respondents who received at least 70 percent of the money allocated for FDI was in the country’s poorest urban areas, with over 90 percent in these areas receiving less than $10 per month. The study found that although the total contribution for the United States to international lending for China was slightly below average, the contribution of the government of China for the next three years in 2010 was more than $1 billion. Overall, while the federal FDI contribution to foreign funds to the country for 2008-2012 amounted to approximately 10.3 percent of that year’s total ($8.9 billion), the local government contributed an estimated $4.8 billion ($3.6 billion) to the United States. The local government is expected to continue to contribute $2 billion over the next six years, but will remain an important source of assistance to the country through the general public loan program and other FDI