Market Entry Strategy of Cool Jewels Samples †MyAssignmenthelp.com

Question: Discuss about the Market Entry Strategy of Cool Jewels. Answer: Introduction Cool Jewels of Australia is looking forward to introduce its market in China as the company is hopeful about the expansion of its branches in other countries. China is considered to be the third largest country in the world after Russia and Canada. The country is located along the Pacific Oceans coastline (Ming 2012). It is covering an area of 9.7 million square and it has a coastline running 18,000 kilometers. It lies in the East of Asia. The climate of China is also diverse ranging from tropical to subarctic climate. The country has mostly mountains and plateaus and good source of mineral resources. The current population of China is 1.38 billion and it contains 18.47% of the total worlds population. The major cities and towns according to the population in China are Guangzhou, Sahnghai, Chongqing and Beijing (Ming 2012). Cultural environment of China Language: Mandarin is the official language of China and it is also known by the name Putonghua which is actually based on the dialect of Beijing (Simmons 2013). Religion: In China people are generally said to be atheist. 20% people are following Taosim and Confucianism and 6% are Buddhists. Customs: China is considered to be a larger country and peoples traditions also tend to vary by its geography and also by ethnicity. China has 56 minority groups based on ethnicity. The largest group is known by the name Han Chinese and it has about 900 million of people (Simmons 2013). Culture: China believes in traditional culture which is based on harmony, wisdom, loyalty and righteousness. The traditional value is embodied in the diplomacy of China through the concept of harmony and embracing the traditional values of China. Attitude: From the point of view of attitude, Chinese people are known for their hospitality and they are very reserve. Material Culture: The material culture represents the object which varies from the tablet of ancestor and oil lamps to the accessories including the buttons of Mandarin. There are also collections of geometric compasses made by the geometric maker and ink sticks which was made for the dynasty of Qing (Simmons 2013). Political Environment of China The Government policies are motivating and encourage business for the outsiders and to top it, the rules and regulations are not changing frequently and that is why it would be easier for the outside business to flourish in China (Hua and Nathan 2016). The imposition of tariffs, trade and subsidies at times pose problems for the new companies to do their business. Need to buy the local legislations, restrictions on services and also the presence of not at all satisfactory baking system might cause some troubles for the new company to flourish. China also in order to enhance its GDP must welcome the outside companies for the employment facilities and good infrastructures (Hua and Nathan 2016). Geographical factors of China The climate of China tends to vary from region to region since the country is huge. The North and Central Regions of China suffer frequent rainfall having cold winters and hot summers. Social tastes Among the social tastes of China, the demand of jeweler faced a continuous growth in China. Other factors such as Economic factors of China says that for the last five years, the economy of China has experienced the high growth rate of GDP and that is why it is welcoming other companies to flourish in their market (Ho 2014). Social Factors such as the increase in the population growth and increase in the taste for jewelleries in the country, Company like Cool Jewels would face major hike in their company (Ho 2014). Technological factors: New products are being made and also new production of the technology through the working of the mobile telecommunications, this can also might benefit the company for waging online transaction with the buyers (Ho 2014). SWOT analysis of Cool Jewels Strength: Cool Jewels sell high quality and unique way of designed jewelries and these designs can attract the people of China. The company has exclusive stores in US, Australia. The company also offers the finest diamonds. It also has visibility of good brand. With the increase of GDP in China, the company can flourish well in the country (Wholesale Fashion Jewelry by Cool Jewels 2017). Weakness: In China, the company has to face tough competition with the other markets of China. It also lacks its presence in the Asian countries. The shop runners need to know the local language Mandarin to understand the customers demand (Wholesale Fashion Jewelry by Cool Jewels 2017) Opportunity: There is a big scope in the organized sectors of jewelry in China. The Company is also focusing on the pricing based competition and also focusing on the quality to make its presence prominent. (Wholesale Fashion Jewelry by Cool Jewels 2017) Threats: The threats include therisky management of the shop as in China there prevail much social insecurities while handling a shop. The main problems may involve regarding the cost reduction in the Chinese markets. The company may face problems in China regarding the rights of the consumers and the validation of the contracts (Wholesale Fashion Jewelry by Cool Jewels 2017). Recommendations To make its strong presence in China, Cool Jewels need to work on the gold jewelries as the wants of the gold in China are more than other mineral. The advertising can happen to make the position of the firm strong can happen through pamphlets, media attraction or trade shows in order to make the companys position firm. The company can enter the Chinese market through direct exporting which include the aspects of the transactions, capability to know the customers and also help to grow a better understanding of the place of the market (Cavusgil et al. 2014). The possible way to enter the market is to seek assistance from the Business consultants of China and Australia. Conclusion The Cool jewels must follow the important factors considering the PEST of China. At the same time, the company needs to work on the gold jewelries and in order to make its establishment firm, it can do it through the trade shows. The company can also make its entry through the process of direct exporting with the help of the business consultants of China. China is growing market and a company can see a bright future ahead. References Cavusgil, S.T., Knight, G., Riesenberger, J.R., Rammal, H.G. and Rose, E.L., 2014.International business. Pearson Australia. Ho, J.K.K., 2014. Formulation of a systemic PEST analysis for strategic analysis.European academic research,2(5), pp.6478-6492. Hua, S. and Nathan, A.J., 2016.Chinese Political Culture. Routledge.management Ming, D.E.N.G., 2012. Institution Distance, Demonstration and Location of Chinas OFDI [J].Journal of International Trade,2, p.013. Simmons, I.G., 2013.Interpreting nature: Cultural constructions of the environment. Routledge. Wholesale Fashion Jewelry by Cool Jewels . 2017.Wholesale Fashion Jewelry by Cool Jewels . [online] Available at: https://www.cooljewels.com/ [Accessed 8 Aug. 2017].